South Korea advances won internationalization and eases foreign-bank currency rules

South Korea will raise the foreign-currency borrowing reporting threshold and cash-pooling limit for local branches of foreign banks to at least $100 million from $50 million, Deputy Prime Minister and Finance Minister Koo Yun-cheol said at an American Chamber of Commerce in Korea (AMCHAM) meeting in Seoul on the 19th. The government is also pursuing won internationalization, 24-hour foreign-exchange trading and an offshore won settlement system, while newly appointed Bank of Korea (BOK) Deputy Governor Kwon Min-soo said on the 20th that he would support the won's wider international use and South Korea's inclusion in the Morgan Stanley Capital International (MSCI) developed-market index. Koo additionally outlined capital-market reforms, Korea-U.S. strategic investment and artificial-intelligence cooperation, while Kwon emphasized financial and price stability, household-debt risks and foreign-exchange market resilience.

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