South Korea's Ministry of Economy and Finance held a second advisory committee meeting to expand foreign securities investment by improving access to the foreign exchange market, gathering input from the Bank of Korea, other financial authorities and major domestic and international financial institutions active in Korea’s FX market. Discussions focused on implementation issues and expected impacts of FX market modernization, including longer trading hours, plans for a 24-hour market and an offshore KRW settlement system. The government outlined recent measures such as extending FX market trading hours from 15:30 to 02:00 the next day and expanding participation by overseas foreign exchange business institutions (RFI), which it said have been improving market accessibility. It also reported that average daily spot FX trading volume in the first quarter of 2026 rose to USD 15.91bn, up 14.8% from the previous quarter, and reiterated that key tasks in its January 2026 FX and capital market roadmap for MSCI developed market index inclusion, including a full 24-hour opening and an offshore KRW settlement system, are being pursued. Advisory members supported the direction of reforms but highlighted the need for regular dialogue, investor-friendly infrastructure and sufficient time for market participants to adapt, alongside competitive pricing, adequate liquidity during key foreign investor trading windows and strong transaction safety. The ministry requested firms to upgrade internal systems, staffing and processes to support implementation and said it will work with the Bank of Korea and other agencies to reflect market feedback and make prompt improvements to support smooth settlement of the new arrangements.

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