Korean Exchange Prepares One-Day Stock Settlement — Korea Herald

In South Korea, the Korea Exchange (KRX) has presented a plan to shorten the settlement cycle for stock transactions from two business days to one. Currently, investors settle trades two business days after the transaction is concluded.

Infrastructure is to be prepared by 2027

As Korea Herald reports, the relevant bodies plan to complete the creation of infrastructure for the new mechanism by October 2027. After the work is completed, approximately six months will be needed to test the shortened settlement cycle.

A specific launch date for the system has not yet been determined. If preparations and testing proceed without obstacles, the new procedure could begin operating in 2028.

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Purpose of the changes

KRX stated that the initiative is intended to bring the settlement date forward by one day and reduce risks in the securities market. Under the exchange's plan, stock sellers will be able to receive funds on the next business day after the transaction. The reform also provides for reducing operational workload and risks through the automation and standardization of processes in the industry.

To implement the plan, KRX will hold consultations with financial regulators, local and foreign financial companies, as well as overseas investors.