South Korean won holds steady as historic 24-hour trading begins

July 6, 2026 - 08:57

The South Korean won remained stable on Monday as the country launched its first-ever round-the-clock foreign exchange trading system. This move marks a major milestone in Seoul's long-running campaign to make its financial markets more accessible to international investors.

Under the new system, the onshore won market now operates nearly continuously, allowing trading to take place outside of traditional business hours for the first time. Previously, the market closed at 3:30 p.m. local time, forcing offshore investors to rely on less transparent nondeliverable forward contracts after hours. The extended hours are expected to reduce transaction costs and improve price discovery for the currency.

The won traded in a tight range against the U.S. dollar during the initial session, reflecting cautious optimism. Analysts noted that the smooth launch was a positive sign, though they expect the full impact to unfold gradually as global participants adjust their workflows.

The reform is the centerpiece of South Korea's broader push to upgrade its financial infrastructure. Authorities hope that deeper liquidity and greater transparency will eventually pave the way for the won to be included in major global bond indexes, a goal that has eluded Seoul for years. For now, the focus remains on ensuring the new system operates without glitches, as regulators monitor for any unusual volatility in the early stages.