Finance minister stresses banks’ role in FX market reform

Finance Minister Choi Sang-mok on Thursday asked for major banks’ role and support for the successful reform of the foreign exchange market, the finance ministry said.

Choi made the request during a meeting with the chiefs of KB Kookmin Bank, the state-run Korea Development Bank, Shinhan Bank, Woori Bank and Hana Bank in Seoul, as the government has been working to ease regulations and implement measures to attract more foreign investors.

“The structural reform of the FX market is crucial for the ‘corporate value-up program,’ and banks can play an active role for the goals,” Choi said.

Last month, the government announced details of the program that calls for prioritizing shareholder returns through tax benefits and other incentives and encouraging listed companies to voluntarily present their valuation improvement plans to address the “Korea discount” phenomenon.

The participating chiefs said they are fully prepared for upcoming changes to market circumstances, while stressing the need for close communication between the government and market players, according to the ministry.

Starting in July, South Korea will extend the onshore trading hours of the FX market to 2 a.m., which currently runs from 9 a.m. through 3:30 p.m.

The country opened its currency market to foreign financial institutions in January under a pilot program.