Regulator to draw up roadmap by Oct. for "T+1" stock settlement

Financial Services Commission chairman Lee Eog-weon, right, speaks during a conference in Seoul, Thursday. Yonhap

The country's financial regulator said Tuesday that it will draw up a roadmap by October for the introduction of the "T+1" stock settlement system.

Currently, South Korea adopts a "T+2" scheme, where stock trading settlement occurs two business days after the trading date, in order to ensure settlement stability.

Earlier this year, President Lee Jae Myung proposed the idea of shortening the stock settlement period to increase market efficiency.

The Financial Services Commission (FSC) said the shortening of the settlement period would help market efficiency, and draw up measures by October this year.

The FSC also said the Korea Exchange (KRX), the operator of the country's stock market, will take measures to extend stock trading hours, including the introduction of an after-hours trading system in September.