South Korea's Financial Services Commission to Pay Interest on IPO Subscription Deposits, Expected 30 Billion Won Annually

According to the Financial Services Commission's July 15 presidential briefing, South Korea will introduce interest payments on IPO subscription deposits and accelerate stock settlement cycles. If interest on subscription deposits is set at 1% annually, investors are expected to receive over 30 billion won in additional returns. The country will also shorten the stock settlement period from T+2 to T+1, with implementation targeted for the second half of 2027. The reforms aim to eliminate structural inconveniences in the investment process and align South Korea's capital markets with global best practices.
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