South Korea prepares for round-the-clock won trading as banks brace for operational challenges

South Korea will begin 24-hour trading for its currency, the won, from July 6, with banks starting trial operations from June 29 as part of the transition.

The move marks a major change for the country's foreign exchange market, which has historically operated under limited trading hours. Dealers say the expanded schedule will require continuous monitoring and additional staffing, increasing workloads for trading teams.

The reform is part of South Korea's effort to make its financial markets more accessible to global investors and strengthen its bid for inclusion in MSCI's developed market index. Authorities are also introducing measures such as offshore won settlement and expanded access for foreign institutions to improve market participation.

At the same time, market participants have raised concerns that the won could experience greater price volatility during periods of lower trading activity. The currency remains under pressure against the U.S. dollar, while overseas investors have been taking profits from the country's strong stock market and domestic investors continue allocating funds to U.S. equities.

Although South Korea previously extended won trading hours to cover the London market, officials believe full-day trading could further improve liquidity. However, MSCI has kept the country in its emerging market category, pointing to ongoing market accessibility concerns.

Banks including Hana Bank, Woori Bank, Shinhan Bank and KB Kookmin Bank are expanding staffing and adjusting shift schedules to support continuous trading operations.