Gov't to allow direct FX trading for retail investors

U.S. Dollar and Chinese Yuan banknotes are seen [REUTERS]

Retail investors can directly trade on foreign exchange markets using their own devices, with the Korean government allowing financial institutions to provide real-time pricing information and foreign exchange orders to their clients.

The Ministry of Economy and Finance announced a legislative notice for the amended law on Wednesday, and plans for the amendment to come into effect as early as the second half of next year.

Investors have relied on banks to facilitate their trading until now.

The ministry will also allow registered foreign financial institutions to directly sell or buy one currency in exchange for another via a revision of its enforcement decree in the fourth quarter.

The changes could improve the local foreign exchange market's competitiveness, according to the ministry. They are also in line with the government’s efforts to boost foreign exchange trading.

The country’s foreign exchange market will extend its trading hours from the second half of 2023. The local foreign exchange market currently operates from 9 a.m. to 3:30 p.m., but the closing time will be extended to 2 a.m.

The ministry also plans to establish a committee dedicated to improving the foreign exchange system that will gather opinions from the industry, academics and the private sector in the process of improving the system's operation.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]