Seoul’s 24-hour won trading shift triggers dealer anxiety

For Namkoong Taehun, a veteran currency trader at Hana Bank, the shift marks the end of an era. Having navigated the 2008 financial crisis and the volatility following South Korea’s 2024 martial law decree, he views the impending round-the-clock market as a daunting departure from the restrictive, 9-to-3 environment of his early career. Banks are now scrambling to adjust, implementing staggered night shifts and expanding foreign teams to manage the anticipated surge in demand for won assets.

The push for an open currency is driven by Seoul’s ambition to shed its long-standing "Korea Discount" and qualify for MSCI’s developed market index. However, the timing remains precarious. With the won hovering near 17-year lows, market participants fear that thin liquidity during off-peak hours could amplify price swings. This vulnerability is compounded by record-breaking KOSPI gains, which have paradoxically fueled won weakness as foreign funds repatriate profits and local investors aggressively pivot toward U.S. equities.

To mitigate these risks, authorities have introduced an offshore won settlement system and permitted foreign entities to hold the currency directly. Despite these reforms, MSCI recently opted to keep South Korea in the emerging market category, citing persistent accessibility issues. As banks like Woori and Shinhan bolster their international rosters, dealers like Shin Jae-min prepare for a new, unforgiving rhythm where market-moving events—such as major IPOs—can trigger intense, late-night surges without warning.