Korea Starts 24-Hour Won Trading in Push for Market Liberalization

By Kwanwoo Jun

South Korea took another step toward liberalizing its financial markets as it introduced round-the-clock trading of its currency.

The decision was an attempt by the government to improve access to Korean markets, particularly for offshore investors. That is part of Seoul's broader push to secure developed-market status from global index provider MSCI.

Effective Monday, South Korea extended dollar-won trading to 24 hours on weekdays. Previously, the country's foreign-exchange market operated from 9 a.m. through 2 a.m. local time, a 17-hour trading session.

The won has weakened against the dollar in recent months. That was largely because foreign investors have been rebalancing their portfolios and unloading South Korean equities following the local stock market's meteoric gains this year, analysts said.

South Korean investors' growing investments overseas have also boosted demand for the dollar, putting pressure on the won, they added.

OCBC foreign-exchange strategists Sim Moh Siong and Christopher Wong said that the won's drop appears to be driven more by portfolio flows than trade fundamentals, citing continued foreign selling of won-denominated assets and broader U.S. dollar strength.

The won is likely to remain under pressure unless foreign investors slow their selling of local equities, the U.S. dollar loses momentum or U.S. Treasury yields decline more decisively, the strategists said.

Monday's trade saw a continuation of the won's weakening trend. After opening at 1,527.41 won on Monday, the dollar rose to 1,534.15 won, up 0.3% from Friday's New York close of 1,529.01 won, LSEG data showed.

The won has lost about 6% against the greenback so far this year, making it one of the world's worst performing currencies.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

July 06, 2026 00:20 ET (04:20 GMT)