South Korea plans to ease capital-transaction foreign exchange rules in H2 2026
as part of a strategy to internationalize the won and expand its overseas use.
Measures include incentives for current-account transactions settled in won and
expanded channels for foreign investors to buy won-denominated financial
products to boost demand for the currency. The government will relax borrowing
limits for foreign financial institutions to improve access to won liquidity for
securities settlement and promote won-denominated trade finance via a
currency-swap fund. Officials will strengthen 24-hour market monitoring and
response mechanisms to manage volatility and maintain outreach to foreign countries
investors. The government also commits to issuing further H2 measures to deepen
the deliverable FX market and make it easier for offshore participants to obtain
and use the won.
