Major Changes in South Korea's Forex Market: From 6 Hours to 24 Hours, a Key Step Toward Achieving Developed Market Status

2026-01-09 05:22:13

South Korea’s Ministry of Finance announced a major policy adjustment on Friday: starting from July this year, the Korean foreign exchange market will operate 24 hours a day. This is not just an extension of trading hours but also an important milestone in Korea’s financial market internationalization strategy. Compared to two years ago when the USD/KRW market was only open for 6.5 hours daily, this change signifies Korea’s accelerated integration into the global financial system.

Core Policy Changes

Korea’s reform involves several significant adjustments:

Dimension	Original Situation	New Policy
Trading Hours	6.5 hours daily	24 hours around the clock
Trading Channels	Limited to two domestic interbank networks	Introduction of new offshore trading systems
Participation Restrictions	Onshore trading limited	Further relaxation of onshore trading restrictions
Registration Process	Relatively complex	Simplified registration process

The implementation timetable for these changes is also clear: the Ministry of Finance plans to develop an internationalization roadmap for the Korean won in the first half of the year, with the official launch of 24-hour trading starting in July.

In-Depth Analysis of Strategic Intent

On the surface, this is a market opening policy, but it also conceals Korea’s larger strategic goals. According to official statements, the ultimate aim of these reforms is to have Korea upgraded to developed market status by MSCI.

The Deputy Minister of Finance of Korea explicitly pointed out that the core directions of the reform include:

Significantly increasing the availability and international usage demand of the Korean won
Developing offshore Korean won financing systems
Advancing related work according to the MSCI inclusion roadmap
Promoting trading demand growth through cross-border payment settlement and overseas financing

This means that 24-hour trading is not just a technical change but a crucial step toward the internationalization of Korea’s financial markets.

Impact on the Korean Won and Foreign Exchange Market

Accelerating the Internationalization of the Korean Won

For a long time, the Korean won’s usage in the international financial system has been relatively limited. By relaxing trading restrictions, introducing offshore financing, and simplifying registration processes, Korea aims to significantly enhance the international liquidity of the Korean won. 24-hour trading means global investors can conduct KRW transactions at any time, greatly reducing transaction costs and time costs.

Connection to MSCI Developed Market Status

One of the criteria for inclusion in the MSCI Developed Markets Index is the openness and liquidity of the financial markets. Through this series of reforms, Korea is working hard to meet these standards. If successfully upgraded to a developed market, it will attract substantial passive and active capital inflows, which will be a major positive for Korea’s capital markets and the Korean won.

Summary

Korea’s policy adjustment is a multi-layered reform: from extending trading hours, improving the trading system, to advancing the Korean won internationalization strategy, each step points toward the same goal—making Korea’s financial markets more internationalized and competitive. The official implementation in July will be an important point of observation, as we will see whether these policies can effectively enhance the international usage and market liquidity of the Korean won. For the global financial markets, this is also a noteworthy development—an major Asian economy is further opening its financial markets.

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