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KRX pushes for extended trading hours amid global 24-hour trading trend
Korea Exchange headquarters in Seoul / Korea Times file
By Jun Ji-hye
Plan sparks backlash from unions and brokers over heavier workloads, rising operating costs
The Korea Exchange (KRX) is seeking to introduce a 24-hour trading regime by December next year to enhance the competitiveness of Korea’s capital market, in line with global bourses increasingly moving toward round-the-clock trading, according to company officials Friday.
As a transitional measure, KRX plans to roll out pre-market and after-hours sessions starting in June, effectively extending daily stock trading hours to 12 hours from the current six hours and 30 minutes.
Under the proposed framework, KRX is considering opening a pre-market session from 7 a.m. to 8 a.m. and an after-hours session from 4 p.m. to 8 p.m. If implemented, trading would begin an hour earlier than at alternative trading system Nextrade, which opens its pre-market session at 8 a.m.
“The move is intended to quickly accommodate rising demand from domestic and overseas investors to reflect market developments in the U.S. and Europe in their portfolios at an earlier stage, while also broadening participation in the Korean equity market,” a KRX official said.
Currently, NYSE Arca, part of the New York Stock Exchange, operates trading sessions of up to 16 hours a day and plans to introduce 24-hour trading alongside Nasdaq in the second half of this year. Stock exchanges in London and Hong Kong are also reviewing similar initiatives.
According to KRX, these developments underscore intensifying competition among global exchanges to attract liquidity from retail investors, particularly across Asia.
However, concerns are mounting over heavier workloads for employees and rising operating costs for brokerage firms that would accompany longer trading hours.
Industry officials stressed that extending trading hours goes far beyond simply expanding IT staffing. A longer trading schedule would require additional personnel across back-office functions such as settlement, fund management and withdrawals.
This would inevitably lead to longer working hours and increased overtime, making the initiative difficult to advance without the consent of labor unions. Nevertheless, they said, the plan is being pushed ahead unilaterally, without sufficient consultation with industry stakeholders.
The Korean Finance & Service Workers’ Union has formally voiced its opposition to extending trading hours and plans to hold a press conference next week to protest a 7 a.m. market opening.
The KRX’s labor union is also reportedly preparing to hold a public hearing later this month, while labor unions at brokerage firms have already begun expressing opposition.
“The Korea Exchange should stop pursuing profit-driven operations,” the Daishin Securities labor union said in a statement. “The daily routines of tens of millions of investors would be disrupted, while market monitoring and response efforts would demand far more time. Securities industry workers would be burdened with excessive workloads.”
A securities industry official said, “With Nextrade already in operation, it is difficult to understand what additional benefits would come from KRX also extending trading hours. If the goal is to compete with Nextrade, KRX should pursue practical measures such as fee reductions, rather than simply lengthening trading hours.”