TLDR

  • Beginning in July, South Korea will permit 24-hour foreign exchange (FX) trading as part of its push to secure MSCI developed-market status.
  • The country aims to internationalize the won and boost demand for its currency through new market reforms.
  • Foreign companies will gain easier access to South Korea’s FX market, which previously operated for just 6.5 hours daily.
  • The government will streamline the registration process for market participants and introduce a new system for offshore won trading.
  • Updated economic forecasts project 2.0% growth in 2026, driven by strong export demand—particularly for semiconductors used in artificial intelligence (AI).

Starting in July, South Korea will soon allow 24-hour currency trading. This move is part of the nation’s broader efforts to enhance its financial market and secure recognition as a developed market. Officials announced the plan on Friday, with the goal of boosting the accessibility and demand for the in global markets.

Plans to Open FX Market for 24-Hour Trading

South Korea has long been known for strict currency trading regulations, a legacy of the late-1990s financial crisis. The new plan seeks to ease these restrictions, granting foreign investors greater access to the currency market. Vice Finance Minister Lee Hyoung-il discussed the government’s strategy at a press conference, outlining efforts to internationalize the won.

“By the first half of the year, we will prepare a roadmap to improve the accessibility and demand for the won,” Lee said. The government plans to expand offshore won financing and create a more globalized currency market. These efforts are closely linked to South Korea’s ongoing bid for inclusion in MSCI’s developed-market index.

South Korea’s Efforts to Attract Foreign Investment

In recent years, the government has already relaxed some regulations—such as allowing foreign companies to trade the won from overseas. This was a step toward meeting the requirements for the , which could raise South Korea’s global financial standing. Currently, South Korea’s FX market operates for only six and a half hours per day, restricting international investors’ ability to engage with the currency market.

Officials plan to make further changes, including simplifying the registration process for market participants and creating a new system for offshore won trading. These adjustments aim to support the government’s broader market reforms and attract more foreign capital into the country.

Economic Forecasts and Future Plans

Alongside the reforms, South Korea’s Ministry of Finance has released updated economic forecasts. The ministry now expects the economy to grow by 2.0% in 2026, a slight improvement over previous predictions. The forecast anticipates continued export growth, primarily driven by demand for semiconductors used in artificial intelligence.

Additionally, the South Korean government is focusing on key industries like semiconductors and AI, with plans to support these sectors through tax breaks and financial assistance. The government has also promised a five-year plan to strengthen the semiconductor industry, which will receive significant attention in the coming years.

This comprehensive push for financial market reforms, alongside strategic economic policies, underscores South Korea’s determination to achieve developed-market status.