Key facts
- South Korea will move to a 24-hour trading cycle for its currency from July 6.
- The move aims to achieve developed market status for South Korea.
- Reforms include offshore settlement and permits for foreign investors.
- Banks are trialing the new 24-hour trading system.
- Banks' household mortgage lending rates increased in May.
- The average rate for new household loans rose to 4.46% in May.
- Mortgage rates saw a slight uptick in May.
- Rising market interest rates are cited as the reason for increased loan rates.
South Korea is transitioning its currency, the won, to a 24-hour trading cycle, effective July 6. This significant policy shift is intended to elevate the nation's financial market status to that of a developed economy. The reforms accompanying this change include the introduction of offshore settlement mechanisms and the issuance of permits to facilitate foreign investor participation. Banks are currently conducting trials to prepare for the new system.