The move marks the first phase of the KRX’s longer-term plan to introduce round-the-clock stock trading by December 2027. — The Korea Herald
SEOUL: Amid an unprecedented stock market rally, South Korea is moving to lengthen stock trading hours as part of a broader push to attract more foreign investors – though questions remain over how much the change will actually move offshore capital.
The Korea Exchange (KRX) said Monday it will extend trading hours for the benchmark Kospi and the secondary Kosdaq starting yesterday, introducing pre-market and after-hours sessions that will expand daily trading to roughly 12 hours.
Under the plan, pre-market trading will run from 7am to 8am, while after-hours trading will operate from 4pm to 8pm. The regular session will remain unchanged, from 9am to 3.30pm.
The move marks the first phase of the KRX’s longer-term plan to introduce round-the-clock stock trading by December 2027.
With the change, the KRX will open trading one hour earlier than Nextrade – an alternative trading system that currently operates a premarket session from 8am – while closing at the same time, 8pm.
The exchange said longer trading hours are intended to help both domestic and foreign investors respond more quickly to global market developments.
“The decision reflects growing demand from investors to react promptly to overseas market events and manage portfolios more flexibly,” KRX said.
Market officials said the shift, combined with the government’s plan to extend foreign-exchange trading to 24 hours from July, could make South Korean equities more accessible to global investors and support additional capital inflows.
The experience of Nextrade has fuelled that expectation.
Foreign investors accounted for about 14% of trading volume on the platform in January, up sharply from less than 5% in April shortly after its launch.
While Nextrade does not disclose foreign participation during pre- and after-hours sessions, the overall increase has drawn attention.
Given that Nextrade offers a far narrower stock lineup and thinner liquidity than KRX, some see the rise as a signal that longer hours at the main bourse could draw greater foreign participation.
Others are more cautious.
“Foreign institutional investors care most about liquidity and tight bid-ask spreads,” said an industry official.
“Those conditions are likely to be weaker during extended hours, making it hard to expect a meaningful jump in offshore trading simply by lengthening the session.”
Sceptics also note that many global funds already execute South Korean trades through regional hubs such as Hong Kong or Singapore, or via local Seoul branches, limiting the marginal benefit of longer hours.
Still, proponents argued that the move is increasingly unavoidable as global exchanges push toward continuous trading.
Nasdaq plans to introduce 24-hour stock trading in the second half of this year, while exchanges in London and Hong Kong are also reviewing similar initiatives.
“If US shares begin trading around the clock, the South Korean market risks losing its role as a proxy for global risk sentiment,” said an official at a local brokerage firm. “Capital could simply bypass Seoul.”
Extended trading could also allow foreign investors to trade South Korean stocks alongside real-time currency transactions, potentially helping to dampen won volatility.
The currency has seen sharp swings in recent weeks, strengthening into the 1,420 won-per-US dollar range for the first time since late December. — The Korea Herald/ANN
