
South Korea has initiated the registration of offshore financial entities for interbank Korean won trades, expanding its domestic financial market to international investors. Effective since Oct. 4, registered foreign institutions (RFIs) can join in dollar-won spot and forex swap exchanges from January. Global banks and brokerage firms can register upon opening a Korean won account locally and arranging a credit line with a Korean financial company. An estimated 30 firms have shown interest in South Korea’s forex market. The move is anticipated to elevate the domestic forex market’s trade volume and stabilise the Korean won’s exchange rates. Currently, only 54 authorised local and overseas firms can trade. RFIs will trial domestic forex trading first, with full operations beginning in July 2024, and trading hours extended.