South Korea’s Ministry of Economy and Finance has reviewed the implementation of foreign exchange and capital market reforms with major global investors, focusing on international won settlement, settlement liquidity for foreign securities firms and longer stock trading hours. Investors welcomed measures intended to ease securities trading and settlement but called for continued monitoring to ensure the new arrangements work reliably in practice. A pilot international won settlement network began on Sept. 21, with six overseas branches of Korean banks registered and conducting won transactions ahead of full operation in January 2027. Further measures include planned fourth quarter 2026 changes allowing domestic branches of foreign securities firms to borrow won and foreign currency offshore, and raising the threshold at which their domestic entities must report won borrowing to the ministry in advance. Korea Securities Depository now permits settlement facilitation payments in securities rather than only cash and plans to accept securities due from same day exchange settlement as collateral from October 2026. The Korea Exchange also extended stock trading to 8 p.m. from Sept. 14. Investors additionally urged sufficient preparation and pilot testing before any transition to T+1 stock settlement. The ministry and other authorities will assess operational problems raised by market participants as implementation proceeds.
South Korea’s Ministry of Economy and Finance reviews won settlement pilot, broker funding reforms and extended trading hours
South Korea’s Ministry of Economy and Finance reviewed reforms covering international won settlement, foreign securities firms’ funding and settlement liquidity, and extended stock trading hours. A won settlement pilot is operating ahead of a January 2027 full launch, while further broker borrowing and collateral changes are scheduled for the fourth quarter of 2026. Investors also called for preparation and pilot testing before any move to T+1 stock settlement.