From April next year, foreign investors can exchange currency and trade stocks on the same day when investing in domestic stocks. iClickArt (Unauthorized reproduction and redistribution of the above image is prohibited under copyright law.)

By Koh Hyunjeong

Foreign stock investors from April next year can exchange currency and trade shares on the same day when investing in domestic securities.

The Ministry of Strategy and Finance on Aug. 14 announced its extension of the trading closing deadline from April 2026, allowing the trading of KRW-converted stock before 6 p.m.

To this end, the Bank of Korea's (BOK) BOK-Wire+ will extend its closing time from 5:30 p.m. to 8:00 p.m. to alleviate the "settlement lag" of foreign investors when they invest in KRW-denominated securities.

E-safe, the creditor payment system of the Korea Deposit Insurance Corp., will also revise its operating hours to enable same-day payment for remittances made before 6 p.m.

The submission cycle for outstanding stock-related documents required for submission to the custodian bank will also be changed from monthly to quarterly, something that is expected to delay the deadline for settlement fund remittance.

Related organizations including the ministry, Financial Services Commission and BOK said they will boost investor convenience in line with the country's entry into the World Government Bond Index in April next year.

hjkoh@korea.kr