Starting in October, access to the domestic foreign exchange market will shift from exclusivity for local financial institutions to include overseas firms.

The finance ministry said revisions to a related enforcement ordinance was approved by the Cabinet on Monday and go into immediate effect after a promulgation on October 4.

In a bid to increase access to the market, the government will allow entry by overseas institutions without a local branch or an account with a local institution.

Authorization will be based on whether the institution meets eligibility requirements for a foreign exchange operations agency, such as belonging to the banking or securities sector, and fulfilling the Basel III standards for bank capital adequacy, stress testing, and liquidity requirements.

The government, through the Bank of Korea, will monitor the foreign institutions' trading.

To guarantee the effectiveness of foreign participation, market closing hours will be extended from the current 3:30 p.m. to 2 a.m. as early as next July.