Seoul:South Korea has briefed global investors on its plan to implement the T+1 stock settlement system, According to finance ministry. The briefing, held virtually, was led by Moon Ji-sung, deputy minister for international economic affairs, as the country aims to transition from the existing T+2 system, where trades settle two days post-transaction, to a one-day settlement framework.

According to Yonhap News Agency, the virtual meeting included major global asset managers such as BlackRock, Vanguard, and Amundi, alongside industry associations like the Asia Securities Industry & Financial Markets Association (ASIFMA) and the Global Foreign Exchange Division (GFXD). The government assured participants that market entities would be given ample time to update their systems and procedures before the new system's adoption.

The finance ministry added that South Korea plans to conduct at least six months of testing prior to the full transition to the T+1 settlement system. Despite the roadmap provided, investors raised concerns during the meeting about the potential increase in operational burdens and the challenges a shorter settlement cycle might pose.

Participants also emphasized the need for ongoing discussions to address potential issues that could arise during the system's implementation. The finance ministry acknowledged these concerns and expressed its commitment to further dialogue with stakeholders.