Global Financial Firms Begin Registration to Participate in Korean Foreign Exchange Market

On the 18th, registration for participation in the domestic foreign exchange market by foreign financial institutions will begin.

Foreign financial institutions wishing to participate can apply for registration with the foreign exchange authorities from that day, provided they meet the requirements under the Enforcement Decree of the Foreign Exchange Transactions Act. Once registration is completed, foreign financial institutions will be able to trade KRW-USD spot foreign exchange, foreign exchange swaps, and forward contracts in the domestic foreign exchange market starting January next year. Approximately 30 financial institutions have expressed their intention to participate.

The Ministry of Economy and Finance plans to promptly advance improvements to the overall infrastructure of the domestic foreign exchange market, as well as regulations and practices related to foreign exchange transactions. Improvement measures will be prepared for each task identified during the process of gathering opinions and discussions with major foreign exchange market participants, including reforms to the lead bank system, and will be finalized through the Foreign Exchange Soundness Council (chaired by the 1st Vice Minister) next month.

The Ministry of Economy and Finance stated, “We will closely monitor the implementation of the system and market impact during the pilot operation period to ensure positive effects such as the formation of a globally competitive and open market structure commensurate with the scale of our economy and improvements in foreign exchange services.”