The Korea Exchange (KRX) said South Korea’s proposed switch to next-business-day stock settlement is likely to be fully operational in 2028 if preparations stay on course, bringing sellers their proceeds sooner.
The plan would replace the country’s two-business-day timetable, in use since 1972, with settlement one business day after a trade. A Monday transaction would generally settle Tuesday if both days are business days; under T+2, it would generally settle Wednesday.
KRX said the change would give investors who sell shares access to their money a day sooner. The exchange also said the shorter cycle is intended to lower settlement risk and reduce operational burdens through more automation and standardized processes.
KRX said relevant authorities plan to have the infrastructure for the shorter timetable ready by October 2027. The exchange described full operation in 2028 as likely, conditional on preparations proceeding smoothly.
