South Korea's Ministry of Economy and Finance said, after a joint review with the Bank of Korea and other market authorities, that 25 of the 39 measures in its January foreign exchange and capital market roadmap for MSCI developed market index inclusion have been completed, with three more due by June, taking implementation above 70% in the first half of the year. At the same meeting, it finalized reforms to the RFI regime to reduce registration and reporting frictions for foreign financial institutions and make KRW operational accounts more usable for investment settlement. Measures implemented since February include Korea Securities Depository system changes that allow fund by fund settlement under nominee account structures, acceptance of Legal Entity Identifier confirmation documents as identity evidence for foreign corporate account opening, and removal of trading hour restrictions on Eurex and FTSE KOSPI futures. The RFI changes, to be reflected in June guidance, simplify registration for institutions using centralized booking models, extend the deadline for reporting sanction related events from seven days to 30 business days while narrowing and clarifying the reportable events, and let business KRW accounts hold segregated client balances, transfer securities settlement funds and use temporary overdrafts. Ongoing projects include a pilot for the 24 hour domestic foreign exchange market on June 29 and full launch on July 6, while the offshore KRW settlement network is slated for IT testing in June, pilot operation in September and full operation in January 2027. Participants also reviewed the amended Foreign Exchange Transactions Act, passed by the National Assembly on May 7, which creates the basis for monitoring cross border virtual asset transfers by requiring virtual asset businesses to register with the ministry and report transfer details through the Bank of Korea's foreign exchange system for sharing with tax, customs, supervisory and FIU authorities.
Ministry of Economy & Finance (South Korea)2026-05-21
South Korea's Ministry of Economy and Finance reports 25 of 39 MSCI roadmap tasks complete and finalizes RFI reforms
South Korea’s Ministry of Economy and Finance has completed 25 of 39 measures in its foreign exchange and capital market roadmap for potential MSCI developed market index inclusion, with over 70% implementation expected in the first half of the year. It finalized reforms to the Registered Foreign Institution regime to simplify registration and reporting and improve KRW operational account usability. Recent steps include Korea Securities Depository changes allowing fund-by-fund settlement under nominee structures, acceptance of Legal Entity Identifier documents for foreign corporate account opening, and removal of trading hour limits on Eurex and FTSE KOSPI futures. Ongoing projects include a 24-hour domestic FX market pilot and an offshore KRW settlement network. The ministry also reviewed amendments to the Foreign Exchange Transactions Act to create a framework for monitoring cross-border virtual asset transfers by requiring virtual asset businesses to register and report transfers via the Bank of Korea’s FX system for sharing with tax, customs, supervisory and financial intelligence authorities.