South Korea plans to extend its foreign exchange trading hours by 30 minutes, the country's finance minister said, a move intended to revitalize and globalize the local stock market.
Currently, the local foreign exchange market runs from 9 a.m. to 3 p.m. on weekdays. If extended, it will open till 3:30 p.m.
In a related move, South Korea's financial regulators have been pushing to prolong the Korea Exchange's stock trading hours by half an hour to boost its volume. At present, the stock market also opens for six hours until 3 p.m.
"The Financial Services Commission is pushing for the extension of stock market hours, and (we) will push for that of foreign exchange trading together," Finance Minister Yoo Il-ho told reporters in Washington on Friday (local time).
He is on a visit here to attend the G-20 session of finance ministers and central bankers.
The government will announce details of related plans within the first half of the year and implement the measures as early as possible, according to officials in Seoul.
Yoo cited the need for FX market operation to coincide with share trading. Otherwise, foreign investors will suffer inconvenience in foreign currency exchanges.
South Korea hopes to increase the volume of foreign exchange trading to help it join the Morgan Stanley Capital International (MSCI) index.
The minister dismissed concerns about possible adverse effects.
"The extension of trading hours itself won't necessarily increase fluctuation," he pointed out. "There will be a limit to the increase of trade volume itself, even if the number of trades increase."
Although the hours of the regular FX trading are stretched, the 24-hour non-deliverable forward (NDF) market will operate as usual.
As to the local stock market, its operators have stressed that the trading hours are two to three hours less than those in other nations like Singapore and Europe. (Yonhap)
Currently, the local foreign exchange market runs from 9 a.m. to 3 p.m. on weekdays. If extended, it will open till 3:30 p.m.
In a related move, South Korea's financial regulators have been pushing to prolong the Korea Exchange's stock trading hours by half an hour to boost its volume. At present, the stock market also opens for six hours until 3 p.m.
"The Financial Services Commission is pushing for the extension of stock market hours, and (we) will push for that of foreign exchange trading together," Finance Minister Yoo Il-ho told reporters in Washington on Friday (local time).
He is on a visit here to attend the G-20 session of finance ministers and central bankers.
The government will announce details of related plans within the first half of the year and implement the measures as early as possible, according to officials in Seoul.
Yoo cited the need for FX market operation to coincide with share trading. Otherwise, foreign investors will suffer inconvenience in foreign currency exchanges.
South Korea hopes to increase the volume of foreign exchange trading to help it join the Morgan Stanley Capital International (MSCI) index.
The minister dismissed concerns about possible adverse effects.
"The extension of trading hours itself won't necessarily increase fluctuation," he pointed out. "There will be a limit to the increase of trade volume itself, even if the number of trades increase."
Although the hours of the regular FX trading are stretched, the 24-hour non-deliverable forward (NDF) market will operate as usual.
As to the local stock market, its operators have stressed that the trading hours are two to three hours less than those in other nations like Singapore and Europe. (Yonhap)
