South Korea began 24-hour trading for the won and U.S. dollar in Seoul on July 6 [4].
The move represents a significant shift in the nation's financial infrastructure. By removing time restrictions on currency exchange, Seoul aims to lower barriers for international investors and facilitate greater global investment into local markets.
Under the new system, the Seoul foreign exchange market allows trading of won and dollars on weekdays throughout the entire 24-hour cycle [4]. This transition follows years of efforts to modernize the South Korean financial sector and integrate it more deeply with global capital flows.
Industry veterans have noted the long-term evolution of the market. Namkoong Taehun, who has spent 18 years [5] trading currencies in Seoul, is among those observing the transition as the city seeks to become a more competitive financial hub.
Market participants are monitoring the initial stability of the won as the expanded hours take effect. The shift is designed to reduce the volatility often associated with gap periods between closing and opening bells, providing a more continuous pricing mechanism for the currency.
While the structural change focuses on accessibility, broader economic headwinds remain. James Kynge said markets remain cautious ahead of AI-driven earnings and potential energy shocks resulting from conflict in Iran.
Officials said the goal of the initiative is to improve foreign access to local markets. By operating on a 24-hour basis, Seoul aligns its trading window more closely with major financial centers in New York and London.
“The Seoul foreign exchange market will allow 24-hour trading of won and dollars on weekdays.”
The transition to 24-hour currency trading is a strategic move to elevate Seoul's status as a global financial center. By eliminating the 'dead zones' in trading hours, South Korea reduces the liquidity risk for foreign institutional investors, potentially increasing the volume of foreign capital entering the country's equity and bond markets.
