South Korea is taking steps to enhance its money market by extending its onshore foreign-exchange trading hours and easing regulations on foreign traders.

Longer Trading Hours

Starting from October 4th, the country's forex market will operate from 9 a.m. through 2 a.m. local time on weekdays. This new regulation more than doubles the daily trading hours, which currently end at 3:30 p.m. This extended trading period aims to provide more opportunities for investors.

Easing Rules for Foreign Traders

Under the revised regulation, non-Korean financial institutions will be allowed to participate in the domestic forex market without requiring them to open a local branch in South Korea. Previously, registered foreign institutions had to establish a branch in order to qualify as a forex trader in the country.

This change will enhance accessibility to the local forex market for foreign financial institutions and their client investors, according to the Ministry of Economy and Finance.

Promoting Foreign Capital

The limited forex trading in South Korea has been a hurdle in the country's pursuit of being upgraded to a developed market by MSCI. Such an upgrade would attract more foreign capital. The revision of regulations is expected to address this issue and encourage greater participation from global investors.

For more information, please contact Kwanwoo Jun.

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