South Korea Extends Won-Dollar FX Trading Hours, Raising Volatility Concerns

South Korean financial authorities have approved a plan to extend won-dollar foreign exchange trading to nearly 24 hours daily, effective July 6. This initiative aims to enhance global investor access and market liquidity. However, industry analysts have expressed concerns that the extended hours could lead to increased volatility for the won, particularly during periods of low trading volume overnight. The move is also part of Seoul's broader strategy to achieve developed-market status from MSCI.