Korea to Unveil Shorter Settlement Cycle Roadmap in October
South Korea will unveil an October roadmap to shorten stock settlement from T+2 to T+1, expand trading hours, and boost AI use.Summary
South Korea's financial authorities announced plans to release a detailed roadmap in October to shorten the domestic stock settlement cycle from T+2 to T+1. The initiative, discussed at a Capital Market Infrastructure Innovation Review Meeting involving the FSC, FSS, KRX, and KSD, aims to reduce trade‑settlement risk, free up liquidity, and enhance market efficiency. The T+1 system will first be piloted for off‑exchange settlement of unlisted shares and fractional investment products, with the KSD building the necessary infrastructure by year‑end. In parallel, the KRX will expand trading hours, launching an after‑market session from 4 to 8 p.m. starting September 14 and planning a pre‑market session by the end of next year, with a longer‑term goal of a 24‑hour trading system. Authorities also pledged to accelerate AI‑driven market surveillance to detect abnormal and unfair trading, and to support AI‑based asset‑management services, envisioning a future where various assets are traded continuously in digital form with simultaneous settlement and AI‑guided investment strategies.
(Source：서울경제)