This article is by Kim Kyung-hee and read by an artificial voice.



Korea will extend domestic foreign exchange (FX) market hours to 24 hours and allow foreign investors to settle won transactions offshore in a move to make the currency more accessible to global traders.

The Ministry of Economy and Finance announced Friday that it will pursue these reforms as part of efforts to join the MSCI Developed Markets Index, a key global equity benchmark.

The move came after President Lee Jae Myung, currently visiting the United States, said during the Korea Investment Summit in New York that the government will unveil a comprehensive road map within the year to secure inclusion in the index.

The government plans to expand trading hours in the domestic FX market to operate around the clock, addressing the gap faced by investors in North America. Last July, trading hours were extended until 2 a.m. the next day, which enabled participation from European investors. However, U.S.-based traders still face time-zone restrictions.

Authorities also plan to introduce an "offshore won settlement institution" that will enable foreign investors to settle and hold the Korean currency offshore. Currently, only onshore spot transactions are allowed, and investors must go through two licensed brokers.

Under the new system, foreign financial institutions will be able to open won accounts in Korea and directly manage holdings. Regulations will also be eased to allow foreign investors to freely trade, deposit and borrow the won.



The MSCI index serves as a key investment guide for global funds. If Korea joins the developed market index, passive funds that track it will automatically increase their exposure to Korean equities. Analysts expect that around $30 billion in foreign capital could flow into the local stock market following inclusion.

Korea has been part of the MSCI Emerging Markets Index since 1992. It was placed on the watchlist for potential inclusion in the developed markets index in 2008 but was removed in 2014. Restrictions on foreign access to won trading - rooted in the lingering effects of the 1997 Asian financial crisis - have long been a key obstacle to promotion.

The government, the Bank of Korea, and major financial institutions plan to form a task force to accelerate the process and release a detailed road map later this year.

The Ministry of Economy and Finance said Finance Minister Koo Yun-cheol met separately with MSCI Chairman and CEO Henry Fernandez in New York on Thursday to discuss the plan.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.