[Photo: Korea Exchange]

Korea Exchange (KRX) will introduce pre-market and after-market trading from June and extend total trading hours to 12. It aims to build a market capable of 24-hour trading as early as the end of next year through this process.

Korea Exchange said on Jan. 13 it is pushing to build a 24-hour trading system by December 2027 to respond to competition to attract global investors and to enhance the competitiveness and international alignment of Korea's capital market.

Major global exchanges have entered a battle to secure borderless liquidity, with NYSE Arca currently running 16-hour trading and Nasdaq announcing plans to launch a 24-hour trading service in the second half. The London and Hong Kong exchanges are also reviewing the introduction of a 24-hour trading system.

By contrast, domestic investors' overseas stock investment stood at about 250 trillion won as of end-2025, with liquidity in the domestic stock market continuing to flow overseas.

The exchange decided to build a 24-hour trading system by December 2027 to attract global investors and strengthen capital market competitiveness. As an interim step, it will operate a "12-hour trading system" with longer hours.

The most noticeable change is an earlier market opening time. The exchange plans to open the market at 7 a.m. to absorb potential trading demand. That would be 1 hour earlier than the 8 a.m. opening of Nextrade's pre-market, an alternative trading system.

The exchange also presented measures to address concerns from labour and the securities industry stemming from longer trading hours.

To reduce labour burdens, it will ban orders through nationwide branches during the extended hours and allow only online orders through headquarters and home trading systems and mobile trading systems.

It also plans to ease the burden related to securities firms' obligations as exchange-traded fund liquidity providers by allowing optional participation outside regular market hours. It decided to consider measures from various angles to minimise burdens from information technology development as well.

A KRX official said 24-hour trading initiatives by major global exchanges are aimed at absorbing liquidity from Asian retail investors, including those in South Korea. The official said the trading system overhaul is to boost the competitiveness of the local market and match international alignment.

Keyword

#Korea Exchange #KRX #NYSE Arca #Nasdaq #Nextrade
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