Korea to launch 24-hour FX trading in July to seek upgrade

South Korea will extend foreign-exchange trading to 24 hours from July and introduce an offshore won settlement system while easing rules for foreign institutions, with some newly registered firms allowed to trade immediately under temporary reporting waivers.

South Korea will extend foreign-exchange trading to a 24-hour schedule starting in July, the government said, as part of a broader push to align market access with international standards. The initiative is framed as a step toward won internationalization and to support the country's effort to gain developed-market status from MSCI. Measures include an offshore won settlement system and eased rules for trading and sales entities, while omnibus accounts for institutional investors will be rolled out immediately. Officials noted these steps build on earlier moves that extended trading hours to 2 a.m. in 2024. Key facts: - The government plans to implement 24-hour FX trading from July, according to the 2026 economic growth strategy report. - An offshore won settlement system will be introduced to help ensure liquidity during extended hours, with the Bank of Korea continuing to process settlements. - Foreign investors will be permitted to transact with one another through designated intermediaries, initially limited to registered foreign institutions that provide after-hours support. - Newly registered reporting financial institutions will be allowed to start trading this month, with reporting requirements waived for the first three months. - The reforms will be piloted in September and a fuller rollout is planned for next year, while a won internationalization roadmap is due in the first half of the year. Summary: Officials say the changes aim to improve market accessibility for global investors and to advance the international use of the won as part of a multi-step plan. Immediate steps include omnibus accounts for institutional investors and eased requirements for trading and sales entities. A pilot for the extended regime is scheduled for September, with broader implementation planned next year.