South Korea's finance ministry on Sunday said it plans to allow foreign financial institutions to borrow in won through temporary overdrafts and allow them to use won-denominated bonds as collateral in financial transactions.The measures are part of incentives to encourage the use of the Korean won, to transform the won from a restricted local currency into a more global currency.Starting on July 6, South Korea extended the trading hours of the dollar-won market to a 24-hour trading cycle as South Korea's long-cloistered currency opens up.
South Korea to expand use of won-denominated bonds for foreign investors
South Korea has announced plans to enhance global acceptance of its currency by allowing foreign financial institutions to borrow won. Additionally, these institutions will be permitted to utilize won-denominated bonds as collateral. Furthermore, the dollar-won market trading hours have been expanded to twenty-four hours, seeking to integrate South Koreas currency into the wider international markets.
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