Foreign investors will be allowed to purchase South Korean stocks without authorization on Thursday as the government seeks to ease regulations in a bid to match global standards.

According to the Financial Supervisory Service(FSS) in a press release on Wednesday, the implementation of the revised Capital Market Act will repeal the pre-registration system for foreign investors, eliminating a major impediment to the local market.

Under the soon-to-be outdated system introduced in 1992, foreigners were required to register with the FSS before investing in the local stock market.

The updated policy will also change reporting regulations for foreign securities firms that invest in South Korean markets using omnibus accounts, which hold securities for multiple clients and are often managed by a broker to simplify the accounting process and reduce costs.

The new regulation will require such firms to report transactions on a monthly basis instead of immediately after each move.