South Korea plans to relax foreign exchange regulations for capital transactions in the second half of this year as one of the measures to promote the internationalization of the won and deepen the overseas use of the won. According to the economic policy direction for the second half of the year announced on Tuesday, the government will boost demand for the won by providing incentives for current account transactions settled in won and expanding channels for foreign investors to invest in investment products denominated in won. On the supply side, the authorities will ease lending restrictions on foreign financial institutions to make it easier for them to obtain Korean won liquidity for securities settlement. They also plan to promote trade financing denominated in won through currency swap funds to encourage greater use of the won in trade and financial transactions. The South Korean government also said it will strengthen 24-hour monitoring and response mechanisms to deal with market fluctuations and maintain regular communication with foreign investors. Officials also promised to develop a plan in the second half of the year to deepen the Korean won deliverable foreign exchange market and make it easier for offshore investors to obtain the won.

South Korea plans to relax foreign exchange regulations for capital transactions in the second half of this year as one of the measures to promote the internationalization of the won and deepen the overseas use of the won. According to the economic policy direction for the second half of the year announced on Tuesday, the government will boost demand for the won by providing incentives for current account transactions settled in won and expanding channels for foreign investors to invest in investment products denominated in won. On the supply side, the authorities will ease lending restrictions on foreign financial institutions to make it easier for them to obtain Korean won liquidity for securities settlement. They also plan to promote trade financing denominated in won through currency swap funds to encourage greater use of the won in trade and financial transactions. The South Korean government also said it will strengthen 24-hour monitoring and response mechanisms to deal with market fluctuations and maintain regular communication with foreign investors. Officials also promised to develop a plan in the second half of the year to deepen the Korean won deliverable foreign exchange market and make it easier for offshore investors to obtain the won.