Eunbo Jeong: "Pushing to Change Securities Market Clearing and Settlement Cycle from 2 Days to 1 Day"

On March 18, Eunbo Jeong, Chairman of Korea Exchange, announced that the exchange is working on a plan to change the securities market clearing and settlement cycle from the current two business days after the transaction (T+2 days) to one business day (T+1 day).

Eunbo Jeong, Chairman of the Korea Exchange. Photo by Yonhap News.

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At the 'Capital Market Stabilization and Normalization Meeting' held at the Blue House on the same day, Chairman Jeong stated, "Europe is moving to implement the T+1 settlement cycle starting next October, and we are also preparing to shorten the settlement cycle to keep pace."

Chairman Jeong added, "Last year, the United States shortened its settlement cycle to T+1, and in the virtual asset market, transactions and settlements occur instantly. Ultimately, if transactions are executed through blockchain technology, the clearing and settlement process will disappear altogether," he explained.

Chairman Jeong said, "We are closely monitoring international trends in payment and settlement to ensure we are never late in responding. We will proactively prepare so that clearing and settlement can be carried out efficiently."

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