South Korea will launch 24-hour dollar-won spot trading on July 6, with a trial period starting June 29, as part of a significant foreign exchange liberalisation initiative aimed at securing an upgrade from emerging to developed market status by MSCI. The continuous trading hours will run from 6:00 am Monday to 6:00 am Saturday in Seoul, adjusting to 7:00 am during US winter time. This change addresses a longstanding issue for foreign investors who previously faced challenges managing won exposure outside of Asian trading hours due to a 2:00 am market close.

In addition to extended trading hours, the reform package includes relaxed reporting requirements for non-resident participants, simplified registration processes for foreign institutions, and the introduction of an offshore won settlement system. These measures are designed to enhance the accessibility of the South Korean won on the global stage. A successful MSCI reclassification could trigger substantial passive inflows as global index funds increase their Korean allocations. The upcoming trial period will also serve as a critical test of market stability amid heightened regional currency volatility due to geopolitical tensions and energy price fluctuations.