The South Korea Financial Services Commission has launched a taskforce and held a kickoff meeting on capital market infrastructure reform, focusing on securities trading and settlement upgrades alongside wider digital adoption in the financial investment sector. In opening remarks, FSC Vice Chairman Kwon Dae-young said the work will be guided by four principles of trust, shareholder protection, innovation and market access, with particular attention to how artificial intelligence and blockchain could reshape market infrastructure. The initial agenda combines market structure changes with digital transformation and risk controls. Authorities aim to prepare a roadmap for shortening the settlement period as early as October 2026. The Korea Exchange plans to extend trading hours by opening an after-market from September 14 and potentially a pre-market from the end of 2027. Separately, the Korea Securities Depository is working to establish by the end of 2026 a T+1 settlement infrastructure for over-the-counter transactions in unlisted securities and fractional investment products. The taskforce will also examine AI-based upgrades to market surveillance to strengthen detection of suspicious and unfair trading, while reviewing regulatory barriers to broader use of AI, including AI agents in personal asset management services. Alongside these measures, relevant institutions and industry IT functions are expected to coordinate on risk management, AI-related risks, cyber threats and investor protection. The government and related organizations will hold regular taskforce meetings to examine these measures and review areas where regulation may be hindering the use of AI by financial investment businesses. The group may also take up other related issues as needed.

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