FX.co ★ South Korea Moves to Boost Global Use of Won

South Korea announced on Sunday that it will further liberalize its currency market by allowing foreign financial institutions to borrow Korean won via temporary overdraft facilities and to use won-denominated bonds as collateral in financial transactions. These measures are intended to promote wider international use of the won and support the government’s objective of transforming it from a tightly regulated local currency into one that is more actively traded on global markets. The reforms build on recent steps to open South Korea’s foreign exchange market, including the introduction of 24-hour dollar-won trading from July 6. By improving access to won liquidity and expanding flexibility in funding and collateral management, the government aims to attract more foreign participation, deepen domestic financial markets, and strengthen the Korean won’s global competitiveness.