The government will open the domestic foreign exchange market 24 hours a day and establish an offshore won settlement system.
The Ministry of Economy and Finance said in a press reference related to the "Korea Investment Summit" held on 26th in New York, the United States, that it is pursuing these foreign exchange market improvements as measures to support inclusion in the Morgan Stanley Capital International (MSCI) developed market.
After the "Korea Investment Summit" event, President Lee Jae-myung said a comprehensive roadmap for inclusion in the MSCI developed market would be announced within the year.
The domestic foreign exchange market currently operates until 2 a.m. Previously, it closed in the afternoon, but ahead of round-the-clock opening, it is operating late at night.
With the foreign exchange market operating until 2 a.m., transactions by European investors have become possible, but there are pointed out limitations for transactions aligned with U.S. hours. The government plans to open the foreign exchange market 24 hours a day to eliminate trading gaps for overseas investors.
Along with this, the government will also build a system that allows foreigners to settle won transactions offshore. It plans to introduce a tentative "offshore won settlement institution" system so that foreign financial institutions can maintain won accounts in Korea and manage won directly.
The government said it will ease regulations to allow foreigners to freely conduct won transactions, hold (deposits), and raise funds.
An official at the Ministry of Economy and Finance said, "We will announce and push within the year a 'comprehensive roadmap for inclusion in the MSCI developed market index,' including specific improvement plans for the foreign exchange market."