The South Korean finance ministry announced new measures to enhance foreign exchange trading operations during extended hours as part of its strategy to achieve MSCI developed market status criteria.
The FX liberalization reforms established a $100 million annual transaction limit for registered foreign institutions (RFIs) while extending reporting exemptions until the end of the year. The threshold will be reviewed every three years.
The government intends to enable algorithmic trading operations during nighttime hours while maintaining its efforts to relax market access restrictions for both foreign and domestic participants.
The South Korean government established a dedicated task force this week to pursue MSCI’s upgrade following the index provider’s announcement to continue monitoring the country’s accessibility. The first anniversary of post-midnight trading access led to the recognition of five RFIs which demonstrated active participation as part of Seoul’s initiative to increase offshore interest.
