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2026-07-14 13:06:12
[South Korea plans to ease foreign exchange controls in the second half of the year and take multiple measures to promote the internationalization of the Korean won] (1) The South Korean government announced in its "Economic Policy Direction for the Second Half of 2026" that it plans to ease foreign exchange management regulations related to capital transactions in the second half of the year in order to expand the scope of overseas use of the Korean won and enhance its internationalization. (2) Demand-side measures include: providing incentives for current account transactions settled in Korean won and broadening the channels for foreign investors to invest in Korean won-denominated financial products; supply-side measures include: easing restrictions on foreign financial institutions' borrowing to facilitate their access to Korean won liquidity for securities settlement, and promoting Korean won trade financing through currency swap funds to promote the use of the Korean won in international trade and finance. (3) In terms of supporting management, the government will strengthen the 24-hour market monitoring and response mechanism, continue to communicate with foreign investors, and promise to formulate a plan to deepen the Korean won deliverable foreign exchange market in the second half of the year to further improve the convenience for overseas market participants to obtain and use the Korean won.
