Seoul FX Market Starts 24-Hour Trading as 77.3% of Volume Stays in Day Session
Updated
Updated · en.sedaily.com · Jul 6
Seoul FX Market Starts 24-Hour Trading as 77.3% of Volume Stays in Day Session
3 articles · Updated · en.sedaily.com · Jul 6
Summary
Sunday’s shift puts the Seoul foreign exchange market on a five-day, 24-hour schedule, extending won trading beyond the traditional 9 a.m. to 3:30 p.m. local session.
June data show 77.3% of total won-dollar trading still occurred during Seoul hours, while late-night trading from 10:30 p.m. to 2 a.m. made up just 2.4%, underscoring thin overnight liquidity.
That raises the risk of sharper exchange-rate swings on small volumes unless foreign institutions can borrow and settle won smoothly during London and New York hours, former Bank of Korea deputy governor Lee Seung-heon said.
Analysts say the longer trading window alone may not deepen the market, arguing that investor-friendly tax changes and steps to reduce the 'Korea discount' are also needed to make the won more attractive.
Will Seoul's 24-hour currency market attract investors or expose its economy to speculative attacks?
As Korea's AI chip industry booms, can its financial markets handle the massive influx of global capital?
Are new leveraged ETFs a gateway to Korea's tech wealth or a systemic risk to its market stability?
24-Hour Won-Dollar Trading Goes Live: South Korea’s Bold Bid for MSCI Developed Market Status
Overview
South Korea is launching a 24-hour won-dollar foreign exchange trading system, a major reform that brings the Korean won closer to global currencies like the euro and British pound. This move removes a long-standing barrier for foreign institutional investors, who previously struggled to hedge their Korean won exposure outside regular business hours. By making the market continuously accessible, South Korea is making investment more attractive and manageable, which is expected to boost participation and liquidity in the domestic FX market. Overall, this reform marks a significant step in elevating the Korean won’s global standing and modernizing the country’s financial system.