South Korea’s finance ministry announced Tuesday that it is set to broaden access to its local currency market by permitting offshore companies to apply for trading rights in the coming month. This move is a part of Seoul’s push to include won securities in major global indexes. The green light for this initiative came after a cabinet meeting led by President Yoon Suk-yeol and these amendments to the foreign exchange rules are scheduled to go into effect on Oct. 18. 

In its pursuit to integrate the won-denominated assets into developed-market indexes and attract increased foreign investment, South Korea is reevaluating its existing onshore trading constraints. Foreign institutions, upon registration, can partake in the domestic market via FX brokerage firms. However, they must meet specific criteria, such as demonstrating financial stability and having adequate credit extension arrangements with current market players. The country’s long-term vision is to have the onshore won market available round the clock, following a planned extension to 2 a.m. next year.