The limit on cash-pooling arrangements will also be raised to at least $100 million from $50 million, Finance Minister and Deputy Prime Minister Koo Yun-cheol said at a meeting with the American Chamber of Commerce in Korea or AMCHAM in central Seoul earlier in the day.
Raising the borrowing threshold would allow foreign bank branches to borrow larger amounts of foreign currency before triggering the existing reporting requirement, rather than increasing a ceiling on the amount they are permitted to borrow.
The measures follow recommendations from AMCHAM as South Korea works to make its financial and foreign-exchange systems more in line with global standards.
The move follows the government's won internationalization roadmap unveiled in July and the shift to round-the-clock foreign-exchange trading, while an offshore won settlement system is scheduled to formally begin operating in January 2027.
Koo also pointed to recent capital-market reforms, including an expansion of directors' fiduciary duties to shareholders and South Korea's phased inclusion in the World Government Bond Index, which began in April.
Wednesday's meeting at the Grand Hyatt Seoul brought together about 150 participants, including AMCHAM Chairman James Kim, U.S. government officials and executives from Korean and foreign companies.
Koo called on U.S. companies to expand investment in South Korea and provide policy feedback based on their experience in the country, saying the government would review proposals raised at the meeting with relevant ministries.
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