Kim Mi-gang, director of SC First Bank, said, "There are concerns that if Korea and other Asian and European markets switch to T+1 at a similar time, system and infrastructure construction costs could surge."
He added, "If T+1 is introduced within a short period of time, there are concerns that the current stable payment infrastructure could be damaged," and emphasized, "There is a strong opinion that sufficient verification time must be secured."
The securities industry also stressed the need for sufficient preparation time.
Park Sang-hyun, head of NH Investment & Securities, said, "Settlement cycle is an institutional function like a cornerstone of the market. It's like replacing a cornerstone while the market continues to operate," and emphasized, "Since failure by one or two securities firms to settle payments could lead to a market-wide trust issue, sufficient time is needed for all market participants to follow suit."
The Korea Securities Depository will conduct system tests with market participants before the institutional conversion and plans to prepare contingency measures.
Kim Jin-tak, head of the Korea Securities Depository, said, "Since it will be difficult to revert to the previous system after implementation, we will prepare contingency measures in advance, such as extending the settlement deadline in case of unexpected problems."
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Is it just me that feels like they're subtly delaying this policy because its approval rating is dropping?
▶ Original source: https://news.nate.com/view/20260902n30397?mid=n0304
