SEOUL, January 13 (AJP) - The Korea Exchange plans to introduce premarket and after-hours trading starting in June, extending daily stock trading to 12 hours to keep pace with global moves toward near–round-the-clock markets.
The exchange currently operates from 9 a.m. to 3:30 p.m. Beginning in June, it aims to double that window. Exchange officials said the move is intended to broaden investor access in line with international standards, referring to long-term ambitions for the benchmark index.
Major overseas exchanges are moving in a similar direction. The New York Stock Exchange and Nasdaq are pursuing 24-hour trading in the second half of this year, while regulators in the U.K. and Hong Kong are reviewing extended hours.
Competitive pressure has also intensified at home following the rapid growth of NextTrade, an alternative trading system launched in March last year. NextTrade operates a premarket session from 8 a.m. to 8:50 a.m. and an after-hours market from 3:30 p.m. to 8 p.m. Trading on alternative platforms accounted for about 12 percent of total market volume in the previous session, the exchange said.
To differentiate itself, the Korea Exchange is considering opening a premarket as early as 7 a.m. A trading day running from 8 a.m. to 8 p.m. would mirror NextTrade’s schedule but could put the exchange at a disadvantage on transaction fees. If the earlier opening is adopted, South Korea’s equity market could operate from 7 a.m. to 8 p.m
The exchange said it plans to solicit feedback from member firms as early as this week before finalizing the schedule.
Beyond equities, the exchange plans to extend derivatives trading hours to 24 hours a day by the end of 2027, from the current 19 hours, which would make it the first market in Asia to offer round-the-clock derivatives trading. It also plans to shorten the stock settlement cycle to T+1 from T+2, following trends in advanced markets.
The United States and Canada completed the shift to T+1 in May 2024, and the U.K. and Europe are expected to follow around October 2027.
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