Korea to Shorten Stock Settlement to T+1 in 2-3 Years
1Plans aim to shorten the two-day stock settlement cycle to just one day.
2The President urged faster action, but system overhauls mean it won't be quick.
3Securities firms expect it will take 2-3 years to build and test safe systems.
📖 Easy Explanation
🔍 Background
Currently, you have to wait two days (T+2) to receive the actual cash in your account after selling stocks. Recently, President Lee Jae-myung ordered this period to be shortened, asking, 'Why pay the day after tomorrow for stocks sold today?', sparking full-scale discussions.
📌 Key Points
Plans are underway to reduce the stock settlement period to one day (T+1). However, immediate implementation is difficult because various institutions, including the Korea Exchange and securities firms, must align and safely test complex IT systems. The industry estimates that about 2-3 years are needed for perfect preparation.
💡 Why It Matters
Once implemented, you will be able to get cash much faster after selling stocks. This will provide more financial flexibility, allowing you to quickly access funds for urgent medical bills or living expenses.
📚 Glossary
결제 주기 (Gyolje Jugi)The settlement cycle, which is the time it takes for money and stocks to actually change hands when trading.
1거래일 (1 Georaeil)One trading day, referring to a day the stock market is open for trading, excluding weekends and holidays.
프리·애프터 마켓 (Peuri Aepteu Maket)Pre-market and after-hours market, where additional trading can occur before and after regular trading hours (9:00 AM - 3:30 PM).