South Korea’s finance ministry on Sunday said it plans to allow foreign financial institutions to borrow in won through temporary overdrafts and allow them to use won-denominated bonds as collateral in financial transactions.
The measures are part of incentives to encourage the use of the Korean won, to transform the won from a restricted local currency into a more global currency.
Starting on July 6, South Korea extended the trading hours of the dollar-won market to a 24-hour trading cycle as South Korea’s long-cloistered currency opens up.