The Ministry of Finance and Economy said on the 9th that 24-hour transactions will be possible in Korea's foreign exchange market starting in the second half of this year. This means dollars can be bought and sold until 6 a.m., when the U.S. stock market closes. Currently, it opens at 9 a.m. and closes at 2 a.m. the next day.
On this day, the Ministry of Finance and Economy released a "comprehensive foreign exchange and capital market roadmap for inclusion in the Morgan Stanley Capital International (MSCI) developed markets index" in the "2026 economic growth strategy." President Lee Jae-myung previously pledged inclusion in the MSCI developed markets index.
As of this month, the size of global funds tracking the MSCI developed markets index is estimated at about $16.5 trillion. Korea is included in the MSCI emerging markets index, whose tracking funds amount to one-fifth of the developed markets index.
To be included in the MSCI developed markets index, foreign investors must be able to access the country's financial market freely, and there must be no investment barriers. Korea was assessed as not meeting these conditions and failed to be included in the MSCI developed markets index in Jun. last year.
◇ Real-time foreign exchange transactions during U.S. market hours
The government decided to operate the domestic foreign exchange market 24 hours a day starting in the second half of this year. This will allow real-time currency exchange during U.S. market hours. Export corporations will also be able to buy and sell dollars in real time.
Regulations that made it difficult for foreign investors to invest in Korean stocks will also be eased. Starting in Sep., foreigners will be able to open won accounts at their local main banks and buy and sell Korean stocks or bonds. Currently, foreign financial institutions cannot directly open won accounts for their customers. As a result, foreigners had to open separate won accounts at banks in Korea.
It will also become easier for foreigners to buy and sell Korean stocks through local securities firms. Under current financial investment regulations, only overseas securities firms that are major shareholders of domestic financial companies or their affiliates can open accounts for trading Korean stocks. The government plans to abolish this rule within this month. This will allow foreigners to buy and sell Korean stocks through a variety of small and midsize overseas securities firms.
In addition, regulations will be eased so that when foreigners invest in Korea through asset management company funds, they need to open only one account (omnibus account). Until now, a foreign fund had to open a separate account for each fund to invest in Korean stocks. Financial authorities said they required accounts to be opened for each investment in order to accurately identify the investment entity.