Korea Exchange sets up plan for shorter settlement for stock trading

What happened: The Korea Exchange unveiled a plan to shorten the stock settlement cycle from two business days after a trade to one business day. Key numbers: South Korea has used the two-day cycle since 1972. Infrastructure is to be completed by October 2027, with full implementation likely in 2028. Why it matters: The KRX said the change would let investors who sold stocks receive proceeds the following day and would reduce settlement risks and workload through industry automation and standardization.

The Korea Exchange unveiled a plan to shorten the stock settlement cycle from two business days after a trade to one business day.

The KRX said the change would let investors who sold stocks receive proceeds the following day and would reduce settlement risks and workload through industry automation and standardization.