South Korea will operate its domestic foreign-exchange market for KRW/USD trading 24 hours a day on weekdays starting July 6 [1, 2].
This transition represents a strategic attempt by authorities to modernize the financial landscape. By expanding trading hours, the government hopes to attract greater inflows of foreign capital and mitigate the pressures of a high-exchange-rate environment [1, 2].
The move comes as the South Korean won faces significant pressure against the U.S. dollar. The average KRW/USD exchange rate in the previous month climbed to over 1,520 won per US$ [1]. This follows a period of sustained weakness, with the average rate in the second quarter of 2026 recorded at 1,501.93 won per US$ [1].
Market analysts said that while the extended hours may provide more liquidity, they could also introduce new risks. The 24-hour system may increase intraday volatility, potentially leading to sharper price swings as the market reacts to global news in real time [1, 2].
These structural changes are being implemented against a backdrop of retreating foreign investment. This year, foreign investors have conducted a net sell-off of KOSPI stocks totaling 157.3 trillion won [1]. The government said the expanded trading window is a necessary step to make the South Korean market more accessible and competitive for international traders.
By aligning domestic trading hours more closely with global markets, officials said they aim to reduce the friction that often deters foreign institutional investors. The hope is that increased accessibility will stabilize the currency and reverse the trend of capital flight from the domestic equity market [1, 2].
“South Korea will operate its domestic foreign-exchange market for KRW/USD trading 24 hours a day on weekdays”
The shift to a 24-hour trading cycle is a tactical response to the won's depreciation and the exodus of foreign capital from the KOSPI. By removing the time-zone barriers that historically limited liquidity, South Korea is attempting to integrate more deeply into the global financial system to stabilize its currency, though it accepts the trade-off of higher short-term volatility.
