외국인 한도 (oegugin hando)

A cap on how much of certain Korean companies foreign investors may own in total.

외국인 한도 (oegugin hando) is a foreign ownership limit. Most Korean stocks have none, but companies in some industries, such as telecoms, broadcasting, airlines, power and defence, have legal caps on total foreign ownership; telecom companies, for example, are capped at 49%.

외국인 소진율 (the 'exhaustion rate') shows how much of the limit is already used. When it is full, foreigners can only buy shares that other foreigners sell, sometimes at a premium.

Also called: foreign ownership cap · 외국인 소진율 (exhaustion rate)