South Korea on Monday rolled out its landmark 24-hour onshore spot dollar-won trading system, marking a significant step in the country's efforts to improve currency accessibility and strengthen its case for inclusion among developed markets in the MSCI global index, according to Reuters.
Under the new framework, the onshore foreign exchange market began operating at 6:00 a.m. local time on Monday (2100 GMT on Sunday) and will remain open continuously until 6:00 a.m. on Saturday, allowing market participants to trade the won across a much broader time window than before.
The extended trading hours aim to make the South Korean currency more accessible to global investors, improving liquidity and enabling participants in different time zones to transact more efficiently.
According to Reuters, the move is part of a broader package of reforms designed to enhance the convertibility and international appeal of the won, as Seoul continues its push to secure an upgrade from emerging market to developed market status in MSCI's widely tracked equity indices.
Finance Minister Koo Yun-cheol described the launch of the new trading regime as an important milestone for the South Korean currency during a visit to the foreign exchange dealing room of Hana Bank in Seoul, the finance ministry said, according to Reuters.
South Korea has been pursuing a series of financial market reforms in recent years to align its capital markets more closely with global standards. Expanding foreign exchange trading hours is expected to improve market efficiency, facilitate participation by overseas investors and support the country's long-term objective of increasing the won's role in international financial markets.
The successful implementation of the round-the-clock trading system could also strengthen South Korea's credentials as it seeks greater recognition from global index providers and aims to attract higher levels of international investment into its financial markets.
