To increase the speed of investment capital turnover and market efficiency, a plan to shorten the stock market settlement period by one day is being actively promoted.
According to financial authorities, the Korea Exchange, Korea Securities Depository, etc. will hold a discussion meeting tomorrow to gather opinions from related industries, experts, and individual investors on shortening the stock market settlement cycle.
Currently, stock trading is structured so that settlement occurs two days after the transaction date, with the exchange and depository managing credit risk.
Sellers have been able to reinvest their selling proceeds before settlement, but there has been dissatisfaction with the fact that they cannot immediately recover their selling proceeds.
If the settlement period is shortened by one day, investors will be able to secure funds more quickly after selling stocks, which is expected to increase the speed of investment capital turnover and market efficiency.
Previously, the United States introduced a T+1 system in May 2024, and the United Kingdom and the European Union are promoting implementation by October 2027.
Domestically, there is a possibility of implementation as early as October next year, aligning with the global market.
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