South Korea’s FX Market Goes 24/7 in July - A Bold Move for MSCI Status

Seoul throws open the trading doors—no closing time in sight.

The Never-Closing Shop

South Korea's foreign exchange market is ditching the 9-to-5. Come July, it's a round-the-clock operation. The goal? To meet the stringent requirements for an upgrade in MSCI's market classification—a status that could funnel billions in global passive investment into Korean assets.

Playing the Global Game

This isn't just about convenience; it's a strategic pivot. Major financial hubs like London and New York have long operated on a near-24-hour basis to capture global capital flows. By aligning its market hours, Korea aims to signal its readiness to compete on the world stage, reducing the 'home bias' that often sidelines Asian markets during off-hours.

The Liquidity Question

Extended hours promise greater access, but they don't guarantee depth. The real test will be whether global banks and institutional traders commit the manpower and capital to make the overnight sessions liquid. Otherwise, it risks becoming a ghost town after dark—a common pitfall for markets trying to force their way into the big leagues.

A 24/7 market is the ultimate flex in traditional finance, proving you're serious. Just don't ask about the coffee budget for the night shift. In the end, it's a high-stakes gamble that paying for lights all night will pay off when the sun comes up on Wall Street.

TLDR

• South Korea will allow 24-hour FX trading starting in July as part of its push for MSCI developed-market status.
• The country plans to internationalize the won and increase demand for the currency through new market reforms.
• Foreign companies will have easier access to the South Korean FX market, which was previously limited to 6.5 hours daily.
• The government will simplify the registration process for market participants and introduce a new system for offshore won trading.
• Updated economic forecasts predict 2.0% growth in 2026, driven by strong export demand, especially in semiconductors for AI.

South Korea will soon allow currency trading 24 hours a day starting in July. This MOVE is part of the country’s broader efforts to enhance its financial market and secure recognition as a developed market. Officials announced the plan on Friday, aiming to boost the accessibility and demand for the South Korean won in global markets.

Plans to Open FX Market for 24-Hour Trading

South Korea has been known for its strict regulations on currency trading, which stemmed from the financial crisis of the late 1990s. The new plan aims to ease these restrictions, allowing foreign investors more access to the currency market. Vice Finance Minister Lee Hyoung-il discussed the government’s strategy at a press conference, where he outlined efforts to internationalize the won.

“By the first half of the year, we will prepare a roadmap to improve the accessibility and demand for the won,” Lee said. The government plans to increase offshore won financing and create a more globalized currency market. These efforts are closely linked to South Korea’s ongoing bid to be included in the MSCI’s developed-market index.

South Korea’s Efforts to Attract Foreign Investment

The government has already relaxed some of its regulations in recent years, such as allowing foreign companies to trade the won from overseas. This was a step toward meeting the requirements for the MSCI upgrade, which could boost South Korea’s financial standing globally. Currently, the FX market in South Korea operates for only six and a half hours per day, restricting international investors’ ability to engage with the currency market.

Officials plan to make further changes, including simplifying the registration process for market participants and creating a new system for offshore won trading. These adjustments aim to support the government’s broader market reforms and attract more foreign capital into the country.

Economic Forecasts and Future Plans

Alongside the FX market reforms, South Korea’s Ministry of Finance has also released updated economic forecasts. The ministry now expects the economy to grow by 2.0% in 2026, a slight improvement over previous predictions. The forecast anticipates continued growth in exports, particularly driven by demand for semiconductors used in artificial intelligence.

In addition, the South Korean government is focusing on key industries, such as semiconductors and artificial intelligence, with plans to support these sectors through tax breaks and financial assistance. The government has also promised a five-year plan to strengthen the semiconductor industry, which will receive significant attention in the coming years.

This comprehensive push for financial market reforms, alongside strategic economic policies, highlights South Korea’s determination to achieve developed-market status.