Korea’s stock markets will be open for 30 more minutes starting this month, the bourse operator said July 31, in a bid to add more vitality to the securities industry.
Starting Aug. 1, the markets for stocks and gold will close at 3:30 p.m., 30 minutes later than the current 3 p.m., the Korea Exchange (KRX) said. The derivatives market will close at 3:45 p.m., instead of the current 3:15 p.m. The opening time of 9 a.m. will remain the same.
It marks the first time in 16 years for the KRX to revise its trading hours. In 2000, the bourse operator abolished the one-hour lunch break.
Market watchers said the extension was inevitable due to the sluggish growth of the local stock markets.
Average daily transactions on the Korea Composite Stock Price Index (KOSPI) market hovered around 5 trillion won (4.3 billion) for the past decade, with an exception in 2011, when the figure reached 6.9 trillion won.
The KRX said the extension of the trading hours will also allow the Korean market to better compete with other major markets in Asia. Currently, the Chinese and Hong Kong bourses close at 4 p.m. and 5 p.m. (Seoul time), respectively.
"The global markets move together, and certain information affects markets around the globe," said Choi Kyung-soo, who heads the KRX. "We need to allow investors to trade whenever they want."
Choi added that the country should also consider paving the way for investors to trade even at night in the long term
Korea Exchange is the operator of Korea’s Securities and Derivatives Markets under the “Financial Investment Services and Capital Markets Act (FSCMA).”
The KRX operates four Markets - KOSPI Market as a main board; the KOSDAQ Market as a venue to small and medium sized enterprises; the KONEX Market for start-up venture companies; and the Derivatives Market, which boasts of the most liquid products in the World. Within its consolidated trading platform, the KRX offers vast product lineup including equity shares, bonds, ETFs, ETNs, ELWs, commodities, futures and options.
In 1956, the KRX opened the door to capital markets by listing 12 corporations. It was a big step for a small country of Northeast Asia, where people were not yet familiar with the concept of the capitalism.
For about six decades afterwards, the KRX now operates a world-class exchange and provides various investment opportunities for the public, as well as funding channels for corporations.
On the back of such endeavors, the Korean capital market has developed into “a big forest with a healthy ecosystem” where around 1,800 companies of all shapes and sizes exist. The market is now a place where people from countries around the world gather and talk about a new future.
In addition, overseas businesses including the export of a Korean-style exchange system, resulted in fruitful outcomes such as expanding the global footprints of our national economy and enhancing our economic status in the international community.
“However, we should not be complacent about the status quo,” the KRX said on its website. “We will aim high by having in mind more valuable ideals for the next six decades, said Chairman Choi Kyung-soo of KRX.
“With strong confidence that our evolution into a leading exchange in the world would be a driving force behind Korea’s emergence as a financial powerhouse, we will keep playing our inherent functions for the capital market, such as funding channels for corporations, promoting trading and protecting investors, and will also beef up our roles for external relations with overseas exchanges, for example, by forging alliances or cooperative ties.”
The KRX is a place where all the values created by people are being traded, the chairman said in his statement.
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KRX 100, KOSPI and KOSDAQ indexes are seen at the lobby of KRX’s main building in Yeouido. (Photos: KRX&NewsWorld)
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