Korea to offer 24 hour US stock trading
Beginning December 6, South Korean brokerages will provide trading in US equities for nearly the full 24-hour period, merging Nasdaq’s newly extended 23-hour schedule with an extra hour via the Blue Ocean alternative platform.
Financial industry sources state that Korean brokerages and the Korea Securities Depository are preparing for the expanded system, with the KSD supporting brokerages by strengthening monitoring and ensuring smooth settlement.
The move follows the US Securities and Exchange Commission‘s approval in April of Nasdaq’s plan to extend trading hours to 23 hours a day, five days a week, starting at 9 p.m. Eastern Time on Sunday, December 6.
The expanded session will include ETFs, with NYSE Arca extending its trading hours to 23 hours a day from December 6, and Korean brokerages will offer retail investors virtually uninterrupted access to US stocks.
South Korea stands out for its broad adoption, with all domestic brokerages set to support the expanded schedule from day one, while brokerages in other markets, such as Japan and Taiwan, are taking a more cautious approach.
In Europe, Australia, and New Zealand, global and fintech platforms are leading adoption, while traditional retail firms cite liquidity and operational concerns, and local brokerages in Southeast Asia have largely shelved plans.
Korean investors’ net purchases of US stocks reached $2.20 billion over the four trading days from November 2 to 6, exceeding August’s $1.96 billion and more than doubling September’s $1 billion.
Industry officials state that the significance of the overhaul goes beyond extending trading hours, as it brings daytime trading into Nasdaq’s official trading session, and brokerages will receive real-time market data from the NYSE or Nasdaq.
The expansion of US trading hours is expected to put Nasdaq in more direct competition with the Kospi, and the Korea Exchange is planning to gradually extend its trading hours toward round-the-clock trading, with a phased plan to introduce 24-hour trading by the end of 2027.
Jin Dong-hwa, deputy head of the Kospi Market Division at the KRX, says that as competition among global markets intensifies, the Korea Exchange will first work to establish a 12-hour trading system by opening a premarket session ahead of regular trading hours.
