On August 26, Deputy Minister for International Affairs at the Ministry of Finance and Economy Moon Ji Sung held a virtual meeting of the Global Key Investor Forum^*, where he briefed major global investors on the progress of Korea’s recent foreign exchange (FX) and capital market reforms and heard feedback from investors on their experience with the newly introduced measures.

^* A regular communication channel between the government and global investors through which the government provides foreign investors with updates on FX and capital market reforms and reviews and addresses difficulties they encounter in the investment process.

The meeting brought together major global asset managers, including BlackRock, Vanguard, Amundi, Northern Trust and State Street, as well as the Asia Securities Industry & Financial Markets Association (ASIFMA)^* and the Asian Corporate Governance Association (ACGA)^**. Representatives from relevant Korean authorities and institutions also attended, including the Ministry of Finance and Economy, the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service, the Korea Exchange and the Korea Securities Depository.

First, the government briefed investors on the progress of recent FX and capital market reforms, including ^❶the distribution of e-FX guidelines^* to support unattended automated trading during nighttime hours in line with the 24-hour operation of the FX market; ➋reforms to the settlement facilitation funding scheme to fundamentally reduce KRW liquidity burdens associated with securities settlement; and ❸regulatory amendments to establish and operate the KRW global settlement network^**, which is scheduled for a pilot launch in September and full implementation in 2027.

^* FX transactions conducted electronically through functions such as the provision of price information and automated order matching.

^** A KRW settlement system that allows foreign investors to hold and transfer Korean won and settle transactions in Korean won overseas through foreign financial institutions.

Investors positively assessed the direction and progress of the recent FX and capital market reforms, while noting the need to continuously review detailed operational arrangements to ensure that the newly introduced measures work smoothly in practice for investors.

In particular, investors emphasized the importance of creating an environment in which the Korean won can be actively traded at more competitive prices during London and New York trading hours following the introduction of 24-hour FX trading. They also expressed expectations that the recently announced reforms to the settlement facilitation funding scheme would significantly ease KRW liquidity burdens in the securities settlement process and called for close monitoring of their implementation.

The relevant authorities and institutions provided detailed responses to investors’ questions on matters within their respective areas of responsibility. In particular, they agreed to explore further improvements through consultations among the relevant authorities and institutions to address any difficulties that persist for investors in practice even after the recent reforms, and to share the results of their review with investors.

Going forward, the government plans to convene the Investor Forum regularly and continue monitoring how key FX and capital market reforms are taking hold in the market.

Please refer to the attached files.