South Korea to Enable 24/7 Forex Trading to Reach Developed Market Status
South Korea will transition to a 24-hour foreign exchange (FX) trading cycle starting in July, aiming to enhance the accessibility of the Korean Won (KRW) for global participants. This strategic initiative seeks to modernize the nation's financial infrastructure and secure "developed market" status, aligning with international standards for MSCI inclusion.
The shift moves away from the previous 6.5-hour daily trading limit for the USD/KRW market, which was restricted to domestic banking networks. New policies include a new offshore Won trading system and relaxed reporting requirements for international entities.
Industry experts anticipate increased KRW presence in global liquidity pools, potentially reducing volatility. The internationalization of the Won is also expected to benefit fintech and cryptocurrency sectors by facilitating more efficient fiat-to-crypto on-ramps for institutional players. South Korea's Ministry of Finance is focused on developing offshore financing options to bolster demand for the KRW, ultimately strengthening its capital market's global competitiveness.