The South Korean government has taken steps to allow offshore firms to join the foreign exchange market in an effort to attract more investments from abroad, according to the Ministry of Economy and Finance on Monday. The revised enforcement decree of the foreign exchange transaction act was approved by the Cabinet and will take effect on October 4.
Until now, only local financial institutions or overseas firms with a branch in the country were allowed to participate in the market. With the new policy, registered foreign institutions like global banks and brokerage houses can now access the market. The Bank of Korea will be in charge of overseeing the activities of these institutions.
In addition, the government is planning to extend the operating hours of the foreign exchange market from 6 1/2 hours to 17 hours, with the goal of implementing the new trading hours in the second half of 2024 after a six-month trial period.
This undated file photo provided by the Ministry of Economy shows the sign of the ministry in the central city of Sejong. (PHOTO NOT FOR SALE) (Yonhap)