Deputy Prime Minister and Finance Minister Koo Yun-cheol (center) applauds during a visit to the dealing room at Hana Bank’s head office in Seoul on the 6th, the first day of the 24-hour foreign exchange market opening. From left: Moon Ji-sung, Deputy Minister for International Affairs at the Ministry of Economy and Finance; Kwon Min-su, Assistant Governor of the Bank of Korea; Deputy Prime Minister Koo; Hana Financial Group Chairman Ham Young-joo; and Hana Bank President Lee Ho-sung. Yonhap News
Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, said Thursday that the launch of 24-hour foreign exchange trading “will be a starting point for the won’s global leap forward,” marking the first day of the new system.
Koo visited the foreign exchange dealing room at Hana Bank’s headquarters in Seoul that day to hear the views of market participants, including domestic banks, overseas branches and exporters, and to encourage staff working in the dealing room. From that day, Korea’s foreign exchange market operates without interruption from 6 a.m. Monday to 6 a.m. Saturday. During U.S. winter time, the opening and closing hours are adjusted to 7 a.m.
Koo stressed that the 24-hour opening is not merely an extension of trading hours but a key piece of infrastructure to raise the accessibility and convenience of foreign exchange trading to the level of advanced markets. He explained that the reform was driven by confidence in Korea’s economic fundamentals, including solid external soundness and a record-high current account surplus, as well as strong demand from foreign investors confirmed by inclusion in the World Government Bond Index (WGBI).
In particular, he assessed that allowing domestic and foreign investors and exporters and importers to trade foreign exchange without time constraints would increase the appeal of the won and Korea’s capital markets. For exporters and importers, this means being able to respond to exchange rate fluctuations in real time, while domestic financial institutions and brokerage firms may find opportunities to expand their business, he explained.
Koo also emphasized market stability for the system to take root. “Stabilizing the foreign exchange market and ensuring the system takes root are the most important tasks,” he said, adding that the government would provide uninterrupted 24-hour monitoring and support for smooth trading. The government also plans to push for full operation of an offshore won settlement system, which will enable settlement and fund transfers around the clock, targeting January next year.
The Bank of Korea (BOK) also plans to review the market impact. Kwon Min-soo, Assistant Governor of the BOK, said he expects the 24-hour opening to expand the breadth and depth of Korea’s foreign exchange market, while adding that the central bank would closely monitor market trends. Participants including Hana Bank, exporters and foreign exchange dealers at overseas branches said they would use the 24-hour foreign exchange market infrastructure to quickly adapt to the new trading environment and enhance their global competitiveness.