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2026-11-02 10:24:26
[South Korea plans to shorten stock settlement cycle from T+2 to T+1 by mid-2028] (1) On the 2nd, the Korea Exchange, the Korea Securities Depository and Clearing Corporation, the Korea Securities Finance Corporation, and the Korea Financial Investment Association released the "Draft Roadmap for Shortening the Settlement Cycle in the Securities Market". The time for funds to arrive after selling stocks will be shortened from two business days to one business day, with the goal of implementation by mid-2028. (2) After implementation, the T+2 settlement system, which has been in use for more than 50 years and has been in place since 1972, will be changed to T+1; T refers to the day of stock transaction, and the settlement cycle is the number of business days from the transaction date to the actual completion of the settlement of funds and securities. (3) The time difference for foreign investors and the morning foreign exchange conversion process are considered obstacles to implementation. US investors actually need to complete transaction confirmation and foreign exchange conversion within a single day; Japan currently still implements T+2, and some global funds that hope to unify the transaction sequence have hinted that they may reduce their investment in South Korea.
