The USD/KRW market welcomes a new 24-hour, around-the-clock trading pattern

According to the latest report from PANews on January 9, the Ministry of Economy and Finance of South Korea announced a major policy adjustment: starting from July, USD/KRW and other foreign exchange transactions will operate continuously 24 hours a day. This move marks a deepening of South Korea’s foreign exchange market reform, aiming to enhance the international competitiveness of Korea’s financial markets.

The Deputy Minister of Finance of South Korea stated in an official release that this reform is a key step for Korea to gain entry into major global stock indices and achieve developed market status. Meanwhile, the Ministry of Economy and Finance is formulating a detailed “KRW Internationalization Roadmap” in the first half of the year, planning to significantly boost the global demand and liquidity of the Korean won through a multi-pronged approach.

From 6.5 Hours to 24 Hours: The Trading Time Revolution

How significant is the opening of USD/KRW trading? Comparing it to two years ago provides a clear picture. At that time, the USD/KRW market was only open for 6.5 hours daily, and USD transactions had to go through only two domestic interbank networks, severely limiting market participants’ trading flexibility. The new policy will completely break these time and channel restrictions, allowing global market participants to trade USD/KRW at any time, greatly enhancing market depth and liquidity.

KRW Internationalization and the Dual Drive of the Offshore Market

To implement the goal of KRW internationalization, the Ministry of Economy and Finance will also introduce a new offshore KRW trading system, which is an important supplement to foreign exchange market reform. Specific measures include relaxing trading reporting requirements, simplifying registration processes for market participants, and stimulating offshore KRW trading demand through cross-border payment settlement and overseas financing innovations. These initiatives will make it easier for international investors to participate in KRW trading, thereby creating a more active global KRW ecosystem.

MSCI Upgrade Goals and the Final Direction of Market Internationalization

The deep goal of these reforms is to strictly follow the MSCI announced inclusion roadmap, striving to upgrade Korea’s capital market to be a member of the MSCI Global Developed Markets Index. The 24-hour trading system, KRW internationalization, offshore market development, and other measures form a systematic market opening plan. By operating major currency pairs like USD/KRW around the clock, South Korea’s financial market will further enhance its international appeal, helping to attract more global institutional investors.