South Korea's stock exchange will extend trading into the evening starting Monday, pushing the close from 3:30 p.m. to 8 p.m. to give overseas investors access during European hours. The move covers roughly 2,400 Kospi and Kosdaq stocks and marks another step toward round-the-clock trading.
Korea Exchange will extend regular trading to 8 p.m. from Monday, up from the current 3:30 p.m. close, according to Bloomberg. The change covers about 2,400 stocks listed on the Kospi and Kosdaq, giving overseas investors a window to trade during European business hours as Seoul seeks more international capital.
Short selling will be permitted during the extended session, though exchange-traded funds will initially be excluded. The exchange's longer-term goal is round-the-clock trading, with pre-market trading planned by the end of 2027.
Kospi surge on AI enthusiasm sets the backdrop
South Korea is testing the expansion after its stock market surged this year on enthusiasm around artificial intelligence. The Kospi remains up 64% in 2026 despite falling 22% from its peak in July.
Extended trading is not entirely new to the country. Alternative trading platform Nextrade introduced pre-market and evening sessions in March 2025 and captured nearly a third of trading activity within months. Retail investors accounted for more than 80% of its activity outside regular hours.
Institutional liquidity is the bigger test
The bigger test for Korea Exchange will be attracting institutional liquidity. Foreign investors may be reluctant to make large trades in companies such as Samsung Electronics and SK Hynix until evening sessions develop sufficient numbers of buyers and sellers.
Thin liquidity could increase transaction costs and lead to larger price swings. Currency hedging is another concern: South Korea's foreign exchange market operates around the clock, but trading outside peak hours can be thin, potentially making hedging more expensive for overseas funds.
Supporters argue the longer session will give investors more flexibility and allow quicker responses to earnings and news released after the regular close. The change follows similar moves toward longer trading sessions in the U.S., where Nasdaq and the New York Stock Exchange have pursued expanded access.
Source: Investing.com
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