South Korea's Ministry of Economy and Finance updated major global investors on reforms intended to improve access to the country’s foreign exchange and capital markets. At a meeting of the Global Core Investor Council, the ministry outlined new electronic foreign exchange trading guidelines, changes designed to reduce won liquidity burdens during securities settlement and plans for an international won settlement network. The August e-FX guidelines set system stability and internal control standards for algorithmic foreign exchange trading, supporting unattended trading during overnight hours. From September, settlement facilitation payments may be made with stocks and bonds as well as cash. From October, securities due from same-day Korea Exchange settlement may be recognized as collateral when the Korea Securities Depository calculates these payments. The international won settlement network, which will allow foreign investors to hold, settle and transfer won from abroad through overseas financial institutions, is scheduled for a September pilot and formal implementation in 2027. Investors called for continued scrutiny of the reforms’ practical operation, including competitive won pricing during London and New York trading hours. The authorities plan to operate the council regularly, monitor implementation and consider further changes where investors continue to face difficulties.
2026-08-27Ministry of Economy & Finance (South Korea)
South Korea's Ministry of Economy and Finance updates global investors on market reforms, including 2027 won settlement network
South Korea's Ministry of Economy and Finance briefed global investors on electronic foreign exchange trading guidelines, securities settlement reforms and an international won settlement network. Settlement changes will be phased in from September, while the won network is scheduled for a September pilot and formal implementation in 2027. Authorities will monitor implementation and consider further reforms where difficulties persist.