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Korean exchange considers delaying the implementation of extended trading hours... Considering industry opposition
Korean exchanges are considering delaying the implementation of extending stock market trading hours until the second half of this year in response to opposition from the securities industry. This reflects industry concerns that, if implemented as originally planned at the end of June, the industry is not sufficiently prepared.
On the 5th, the exchange expressed this stance through a series of meetings with multiple securities firms. According to financial investment industry sources, these meetings were held multiple times to actively gather feedback from member companies, especially emphasizing the need for sufficient IT system preparation time. The exchange stated that it will review each securities firm’s readiness to ensure stable computer system preparation.
In fact, the exchange initially planned to extend the daily trading hours from 6 hours and 30 minutes to 12 hours by the end of last year, but later revised the plan to implement it starting June 29 this year. However, during the recent meetings, discussions included delaying the implementation by one or two months. This is based on the global trend of extending trading hours, and Korea also needs to stay in sync with this movement.
Meanwhile, on the previous day, the Securities Industry Department of the National Affairs Financial Services Union began a comprehensive campaign against extending trading hours in front of the Korea Exchange in Yeouido, Seoul. They argued that extending trading hours is not a measure to advance the capital market and warned that it could prevent long-term investors’ funds from flowing in, instead only benefiting short-term traders active in the stock market.
Given the current situation, the timing of extending trading hours, along with issues related to securities firms’ system readiness and market stability, may also depend on the stance of labor groups and industry players in the second half of the year. These changes will impact future market paradigms and stock trading trends.