SEOUL, January 15 (AJP) -The Korea Exchange (KRX) said Tuesday it is pursuing an artificial intelligence–based innovation strategy as groundwork for a future 24-hour trading system, including a possible acquisition of an AI startup.
The exchange said it plans to integrate AI into market oversight and operations, calling the technology a core strategy that will determine the competitiveness of South Korea’s capital markets. AI is expected to be applied across market surveillance, corporate disclosures and other regulatory functions to improve efficiency and productivity as trading hours expand.
KRX also said it intends to use AI in its information business to diversify revenue streams, including the development of commercial indexes and financial products based on unstructured data. While the acquisition of an AI startup is among the options under review, the exchange emphasized that no decision has been made.
The announcement follows KRX’s plan to extend trading hours in stages, with premarket and after-hours trading set to begin in June. Under the plan, the exchange would operate a premarket session from 7 a.m. to 8 a.m. and an after-market session from 4 p.m. to 8 p.m., extending total daily trading hours to 12 hours.
KRX said the premarket would open one hour earlier than the 8 a.m. opening of alternative trading system Nextrade (NXT), allowing investors to respond more quickly to overnight developments in U.S. and European markets.
The exchange said the move aims to attract greater participation from both domestic and foreign investors and to stem the outflow of liquidity to overseas markets.
The exchange reiterated its goal of building a full 24-hour trading system by December 2027. It also plans to expand derivatives trading to a 24-hour schedule by the end of next year. Currently, derivatives trade for up to 19 hours a day, including the regular session from 8:45 a.m. to 3:45 p.m. and the night session from 6 p.m. to 6 a.m. the following day.
In parallel, KRX said it will push to shorten the stock market settlement cycle from T+2 to T+1, bringing settlement forward to one business day after a trade.
The exchange said longer trading hours are becoming a global standard, citing moves by major exchanges such as NYSE Arca, which currently operates 16-hour trading sessions and plans to introduce 24-hour trading with Nasdaq in the second half of the year. The London Stock Exchange and Hong Kong Exchanges and Clearing are also reviewing similar measures.
KRX said the global shift reflects intensifying competition for cross-border liquidity, particularly as retail investors in Asia increase overseas investment. As of the end of 2025, Korean investors held roughly 250 trillion won ($170 billion) in overseas equities, with domestic market liquidity continuing to flow abroad.
Addressing concerns over increased workload, the exchange said off-hours trading will be limited to orders placed through headquarters, home trading services (HTS) and mobile trading services (MTS), excluding nationwide branch operations. Participation by exchange-traded fund (ETF) liquidity providers outside regular hours will be optional, and measures will be taken to minimize additional information technology development costs.
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