Korea Exchange to Launch Pre-Market in June: "Stock Trading Starts at 7 a.m."

Plan to Extend Trading Hours to 12 Hours
Collecting Feedback from Member Firms

The Korea Exchange will begin operating pre-market and after-market trading sessions before and after regular trading hours starting in June. This move is seen as a response to the global trend of major exchanges transitioning to a 24-hour trading system. The pre-market is likely to operate from 7:00 to 8:00 a.m., while the after-market is expected to run from 4:00 to 8:00 p.m.

According to the financial investment industry on January 12, the Korea Exchange shared its plan for "extending trading hours" with its member firms after presenting it at a Financial Services Commission work briefing the previous day. The plan centers on adding a pre-market session (one hour from 7:00 to 8:00 a.m.) and an after-market session (four hours from 4:00 to 8:00 p.m.) to the current regular trading hours (9:00 a.m. to 3:30 p.m.) for both the KOSPI and KOSDAQ markets. This means the opening of the pre-market will be one hour earlier than NextTrade, an alternative trading system that currently operates its pre-market from 8:00 to 8:50 a.m.

As a result, the single-price auction that was previously applied from 4:00 to 8:00 p.m. will be discontinued. For off-hour block, basket, and competitive block trades before market open, the hours will change from 8:00-9:00 a.m. to 7:00-9:00 a.m. For off-hour block and basket trades after market close, the hours will be extended from 3:40-6:00 p.m. to 3:40-8:00 p.m. The Korea Exchange plans to revise its operational regulations through consultations with financial authorities by June and aims to complete the market launch by June 29.

With the government promoting integrated accounts for foreign investors to boost foreign investment in domestic stocks, and the domestic foreign exchange market also set to operate 24 hours a day starting in July, the Korea Exchange's extension of stock trading hours is seen as an effort to keep pace. If the market opens at 7:00 a.m., it is expected to capture significant trading demand during commuting hours, which could also enhance profitability.