South Korea's Ministry of Economy and Finance said it met major foreign investment institutions and market associations in Hong Kong and Singapore, together with the Financial Services Commission, the Bank of Korea, the Korea Exchange and the Korea Securities Depository, to explain progress on foreign exchange and capital market reforms and gather feedback from overseas investors. The main points were an accelerated pilot for 24-hour foreign exchange market trading at the end of June, continued work on an offshore KRW settlement system for 2027, and operational changes intended to make foreign investors' account opening, settlement and funding processes easier. The authorities said the foreign exchange market's planned July extension to 24-hour trading will instead begin as a trial at the end of June, operating continuously from Monday 06:00 to Saturday 06:00, or from 07:00 during US winter time. Bank of Korea information technology testing for the offshore KRW settlement system is due to start in June ahead of planned full operation in 2027. On the securities side, the Korea Securities Depository completed its Computer to Computer Facility system overhaul, allowing global standard omnibus-account-based settlement from April 27 and enabling real-name verification and know-your-customer checks for Special Nominee Accounts to be handled collectively under a global custodian's name rather than fund by fund. The ministry also highlighted measures to reduce foreign brokers' settlement facilitation cash collateral burden by more than 30%, including lowering the processing unit from KRW 5 billion to KRW 1 billion from April 27 and bringing forward the start of institutional stock settlement operations from 09:00 to 07:00 from March 30. In addition, it said the Korea Exchange has already issued notice of a rule amendment aimed at May implementation that would abolish the mandatory collection of 100% margin on market warning stocks. Further milestones cited were the June start of offshore KRW settlement testing, the end-June foreign exchange market pilot and the May target for the market warning stock margin change. The government said it will continue joint outreach with overseas investors through regular video conferences and frequently asked questions to address operational issues and improve alignment with global market practice.
Ministry of Economy & Finance (South Korea) 2026-04-30
South Korea's Ministry of Economy and Finance briefs foreign investors on an end-June 24-hour foreign exchange market pilot and equity settlement easing
South Korea’s Ministry of Economy and Finance and financial authorities briefed major foreign investors in Hong Kong and Singapore on accelerated foreign exchange and capital market reforms and gathered feedback. Key measures include a pilot launch of 24-hour foreign exchange trading from end-June, testing of an offshore KRW settlement system ahead of planned 2027 operation, omnibus-account-based settlement and streamlined know-your-customer processes, reduced cash collateral requirements for foreign brokers, and abolition of the 100% margin requirement on market warning stocks.