24-Hour Foreign Exchange Trading Launches in South Korea

Exchange rate displays at a currency exchange booth in Myeong-dong in Seoul on Sunday show the won-dollar exchange rate remains elevated. Yonhap

Korea’s 24-hour won-dollar trading, set to launch Monday, will enhance market resilience by stabilizing the local currency amid sustained pressure. The exchange rate has remained above the 1,500-per-dollar threshold for over a month, analysts noted.

While the extended trading hours may initially increase volatility, experts anticipate improved global investor access and deeper financial integration over time, which could foster longer-term currency stability.

Trading hours will operate from 6 a.m. Monday to 6 a.m. Saturday during U.S. daylight saving time, expanding from the prior 9 a.m. to 2 a.m. weekday window. After daylight saving ends, hours will shift to 7 a.m. Monday to 7 a.m. Saturday.

Dollar trading will continue during public holidays unless they coincide with weekends. Non-dollar currency trading will maintain its standard 9 a.m. to 3:30 p.m. schedule.

Compared to last year, when the won traded around 1,300 per dollar, the currency has weakened nearly 6% this year. Foreign investors have sold $102 billion worth of domestic equities, according to central bank data.

The won briefly surpassed 1,500 in March due to geopolitical tensions but has since hovered above that level for 34 consecutive trading days as of Friday.

Experts hold contrasting views on the 24-hour market shift. While some highlight its potential to mitigate volatility by real-time shock absorption, others caution that overnight liquidity gaps could amplify short-term swings during periods of low trading volume.

“Overnight exposure to global shocks demands advanced risk management strategies compared to previous market structures,” stated Choi Kyu-ho of Hanwha Investment & Securities.

Conversely, many analysts believe the continuous trading window will anchor medium- to long-term stability by enabling seamless liquidity for institutional and retail investors across time zones.

Seo Jeong-hoon of Hana Bank emphasized that 24-hour operations could create sustained demand from foreign investors purchasing Korean equities.

Lim Hwan-yeol of Woori Bank added, “Structural overnight liquidity provision would significantly bolster exchange-rate stability over time.”

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