South Korea Launches 24-Hour Won Trading Amid Push for MSCI Upgrade

South Korea began round-the-clock onshore spot dollar-won trading on Monday, a major market reform aimed at improving currency accessibility as Seoul continues its push for an upgrade to developed-market status on global equity indices.

Fundamental Drivers

The onshore market opened at 6:00 a.m. local time on Monday and will now operate continuously until 6:00 a.m. Saturday, marking a significant change from South Korea's previous trading schedule. Finance Minister Koo Yun-cheol described the move as the "starting point for the won's global leap" during a visit to a Seoul bank's foreign exchange dealing room, according to the finance ministry.

The extended trading hours are widely viewed as helping address long-standing foreign investor concerns over won liquidity and accessibility outside Asian trading hours, an area that has been considered in MSCI's market accessibility assessments as South Korea seeks developed-market classification.

Market Reaction

The won traded slightly weaker against the U.S. dollar following the launch, with USD/KRW little changed in early trading as market participants assessed the impact of the new trading framework.

What's Next

Investors will monitor trading volumes and liquidity during non-Asian hours in the coming weeks as an early indication of market participation under the new framework, while also watching for any further updates from MSCI regarding South Korea's market classification review.