The move opens the door for more foreign investment - but also more risk.
Deputy Finance Minister Moon Jisung stated, "This reform is a critical piece of infrastructure that enables Korea's capital markets to achieve the level of accessibility and convenience expected of developed markets." Currently, the won only trades for 17 hours a day, limiting foreign access.
Claire Huang, senior Asia macro strategist at Amundi Asset Management, said, "The extended trading hour is a necessary move to increase its presence in the global financial markets. Facilitating won transactions at a level comparable to G10 currencies requires securing liquidity during extended hours." Ali Bora Yigitbasioglu, senior investment manager of emerging-market fixed income at Pictet Asset Management, noted, "This transparency proves Korea is committed to international standards."
The won has fallen more than 7% against the dollar in 2026, last trading at around 1,550 per dollar. Some investors see new trading prospects too. Ed Al‑Hussainy, a portfolio manager at Columbia Threadneedle in New York, said, "There will be a lot of people trying to access the market as a carry trade opportunity."
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Bumki Son, an economist at Barclays Plc, said, "Greater market openness is likely to come with higher volatility, and that is something policymakers should keep in mind." Lew Changbeom, a former currency trader at Bank of America NA and JPMorgan Chase & Co., recalled the 1997 Asian financial crisis. He said the won was plunging more than 10% a day, with swings at times exceeding 20%.
"I truly feared the country might collapse," he said. That crisis shaped South Korea's tight controls, which are now loosening.
South Korea's economy has changed. It now exports capital, not just goods. In 2026, the country recorded a current-account surplus of about $28 billion in April and $102.7 billion for the first four months.
At the same time, over $60 billion flowed out through outbound direct investment and local investors buying foreign securities. Global investors have pulled some $43.6 billion from Korean equities.
Yet the benchmark Kospi Index has jumped about 80% this year, the strongest run of any major global equity gauge. Semiconductor giants like Samsung Electronics Co. and SK Hynix Inc. have become trillion-dollar giants thanks to the AI frenzy. The country also promised to invest $350 billion in America under a trade deal.
The longer trading hours should make it easier for foreign investors to buy and sell Korean assets. Yigitbasioglu said, "Removing these operational friction points makes holding Korean assets structurally more attractive."
Located in a secure room within a government facility in Sejong, officials are just a phone call away from key decision makers in Seoul or banks to act quickly if the market suddenly turns.
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