South Korea’s financial regulator has committed to publishing a detailed implementation roadmap for a T+1 stock settlement system by October.
The move marks a significant step toward modernizing the country’s capital markets infrastructure, which currently operates on a T+2 cycle where trades settle two business days after execution.
The transition to T+1, where settlement occurs the next business day, is widely viewed as a critical upgrade for market efficiency.
Shorter settlement cycles reduce counterparty risk, lower capital requirements for brokers, and align South Korea with major global markets including the United States, which adopted T+1 in 2024.
For international investors, the change could enhance the attractiveness of Korean equities by reducing operational friction and settlement risk.
Regulators have not yet specified the exact launch date for the new system, but the October deadline for the roadmap suggests a phased implementation likely to begin in 2027.