SEOUL, Nov. 11 (Yonhap) -- South Korea has briefed global investors on the country's plan to introduce the T+1 stock settlement system, the finance ministry said Wednesday, with participants expressing concerns over increased operational burdens.
Moon Ji-sung, deputy minister for international economic affairs, held a virtual meeting with global investors on the previous day as South Korea aims to move from the current T+2 system, under which stock trades are settled two business days after the trade date, to settlement one business day after trading.
Participants included major global asset managers, such as BlackRock, Vanguard and Amundi, as well as the Asia Securities Industry & Financial Markets Association (ASIFMA) and the Global Foreign Exchange Division (GFXD).
During the meeting, the government said it plans to give market participants sufficient time to update their systems and operational procedures.
South Korea plans to conduct at least six months of testing before transitioning to the new system, it added.
In response, investors expressed concerns that a shorter settlement cycle could increase workloads and create operational difficulties.
Participants also called for continued discussions to address potential issues during implementation, the finance ministry said.
This file photo shows the logo of the Ministry of Finance and Economy. (Yonhap)
This file photo shows the logo of the Ministry of Finance and Economy. (Yonhap)