SEOUL, June 26: Beginning July 6, South Korea's won will be traded 24 hours a day, a significant shift from its previously limited hours. Veteran trader Namkoong Taehun of Hana Bank describes this transition as "daunting." With the currency nearing a 17-year low against the dollar, market volatility is a concern.
The country is pursuing developed market status from MSCI, necessitating a shift to a more accessible currency. While this opens opportunities for foreign investor participation, it also heightens risks due to thinner liquidity during odd hours.
Changes to ease trading include allowing offshore investors to hold the won and establishing an offshore won settlement system. This transition aims to reduce the "Korea Discount," where the market trades at lower valuations than global counterparts.
Banks are preparing for this change, with Hana Bank increasing its staff to manage the new demands on a 24-hour schedule. Traders anticipate intense periods of activity, reflecting on their demanding work conditions amid evolving market dynamics.