South Korean Won Launches Near 24-Hour Trading, Breaking Decades of Restrictions
Claire Weston
South Korea this week extended won trading from 17 hours a day to nearly round the clock — the country's biggest FX-market opening since the 1997 Asian financial crisis — reshaping how exporters manage currency risk and advancing Seoul's bid for developed-market status.
How much longer is the trading window?
Won trading previously ran from 9 a.m. to 2 a.m. the next day on business days. The new regime stretches it to Monday 6 a.m. through Saturday 6 a.m., pausing only on weekends and January 1.
This means → the won shifts from a daytime market to one that is almost always open. Overnight FX moves no longer sit in a blind spot until Seoul's morning bell.
In plain terms = if something happens in New York's afternoon, Korean firms can now act on it in the won market almost immediately — no waiting for the next morning.
Why did Korea restrict trading for so long?
During the 1997 Asian financial crisis, foreign capital fled Korea on a massive scale. The government confined trading to daytime hours so regulators could monitor flows.
A Korean economic official said in 2023 that the country's FX market still carries "psychological scars" from that crisis.
This reflects a post-crisis defensive instinct, not a technical limitation — and as Korean exports and equity trading kept growing, the cost of that defense kept rising.
What do exporters think?
HD Hyundai Group said 24-hour won trading will let the company "respond quickly to exchange-rate fluctuations" and has begun building a continuous-monitoring plan.
Seoul Semiconductor expects overseas market information to be "reflected in the exchange rate more quickly," helping it hedge at rates closer to real-time prices. Exports account for roughly 80% of its sales; the firm had worried about sharp overnight swings triggered by Middle East tensions.
A representative of a major Korean semiconductor company said extended hours "will allow us to respond to market changes more flexibly." The firm ships mainly to the U.S. and China, invoicing in dollars.
Are the banks ready?
Major Korean banks have introduced shift systems and added staff to handle the expanded FX workload.
A representative of one major bank said: "Being able to trade with overseas partners around the clock at favorable rates is a clear advantage — clients have responded positively."
This means → banks see the longer hours as a revenue opportunity, not a burden. The ability to execute in off-hours is itself a competitive edge for their clients.
What does this have to do with MSCI and won internationalization?
Bank of Korea Governor Shin Hyun-song said in May that internationalizing the won is a way to reduce exposure to external shocks such as Middle East crises, broadening the currency's use and making trading more open and transparent.
Seoul views 24-hour FX trading as a key step toward inclusion of Korean equities in the MSCI Developed Markets Index — but MSCI maintained Korea's emerging-market classification at the end of June.
In plain terms = longer trading hours are one piece of Korea's capital-market "upgrade" puzzle, but one piece alone was not enough — MSCI has not yet been persuaded. Analysts also note that the extended trading window could strengthen Korea's role as a supply-chain hub, letting companies based there coordinate treasury and logistics more tightly with other Asian operations.
Content is for reference only, not financial advice.