Government Accelerates Plans for 24-Hour FX Market and Offshore Won Settlement—Target Set for Second Half of Next Year

(Sejong=Yonhap Infomax) Jun Hyung Park = The South Korean government has launched the "FX Market Infrastructure Innovation Task Force (TF)" with the aim of opening the foreign exchange market 24 hours a day and implementing an offshore won settlement system by the second half of next year.

First Vice Minister of Economy and Finance Lee Hyung-il chaired the inaugural meeting of the TF at the Korea Federation of Banks building in Seoul on the 21st, stating, "It is true that the closed market structure of the past no longer suits the rapidly growing scale of our economy and trade." He emphasized, "FX market innovation is a core task not only for market stability but also to accelerate the restoration of global trust in our capital markets."

The FX Market Infrastructure Innovation TF was established to develop an action plan for the "FX Market Improvement Measures" announced in September.

The meeting was attended by the Bank of Korea, seven major domestic banks—including KB Kookmin Bank, Industrial Bank of Korea, Shinhan Bank, Woori Bank, and Hana Bank—as well as six foreign banks such as BNP Paribas, Bank of America (BoA), Deutsche Bank, and HSBC.

Vice Minister Lee urged, "As this initiative addresses comprehensive improvements to the FX market system, participating financial institutions should mobilize their internal resources and provide sufficient personnel and funding to actively support the TF."

Financial institutions responded, "The government's policy direction is essential for enhancing national competitiveness, including the development of the FX market and the advancement of the capital market, amid rapidly changing domestic and global conditions. We will spare no support, as this also presents new business expansion opportunities."

FX authorities stated, "Going forward, the TF will prepare for the 24-hour opening of the FX market and the introduction of the offshore won settlement system. In particular, we will work to ensure the smooth implementation of the new system by simultaneously improving the internal IT systems, human resources, organizational operations, and business processes of participating financial institutions."

jhpark6@yna.co.kr

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