By Kang Yoon-seung
SEOUL, Sept. 25 (Yonhap) — South Korea has paved the way for offshore firms to participate in the foreign exchange market in line with efforts to attract more investment from overseas, the finance ministry said Monday.
The Cabinet passed the revised enforcement decree of the foreign exchange transaction act to open up its interbank foreign exchange market to offshore companies, according to the Ministry of Economy and Finance.
The revision will officially be implemented on Oct. 4.
Currently, the country allows only local financial institutions or overseas firms with a branch here, to participate in the market.
The new policy will allow the market to open doors to registered foreign institutions (RFI), including global banks and brokerage houses.
The Bank of Korea will be in charge of monitoring the activities of RFIs, the finance ministry added.
South Korea, meanwhile, also has been making efforts to extend the operating hours of its foreign exchange market — which currently runs for 6 1/2 hours from 9 a.m. to 3:30 p.m. — to 17 hours to close at 2 a.m. the day after.
The government plans to implement the new trading hours as early as the second half of 2024 after a six-month pilot run.
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)
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