Updated
Updated · Bloomberg · Jul 14
South Korea Eases FX Rules in H2 to Expand Won Use Overseas
Updated
Updated · Bloomberg · Jul 14

South Korea Eases FX Rules in H2 to Expand Won Use Overseas

3 articles · Updated · Bloomberg · Jul 14

Summary

  • South Korea said it will relax foreign-exchange rules on capital transactions in the second half of 2026 to push wider international use of the won.
  • Tuesday's policy package pairs the FX easing with incentives for current-account transactions settled in won, aiming to lift demand for the currency abroad.
  • The government also plans to widen foreign investors' access to won-denominated investment products as part of its second-half economic policy direction.
  • The broader goal is to internationalize the won by deepening its use in trade, investment and other overseas transactions.

Insights

As Seoul opens its currency market 24/7, can it attract global capital without importing dangerous volatility?
With China promoting the yuan, can South Korea’s won find its own space in a fragmenting global economy?