Seoul: Major brokerages in South Korea are expressing support for the potential extension of trading hours for the local market. They remain cautious, however, about the possible additional costs that such a move might entail, as indicated by a recent survey.
According to Yonhap News Agency, most officials from ten prominent brokerages acknowledged that extending trading hours is an inevitable trend. They cited Nextrade, the alternative stock market that began operations in March, which already runs for 12 hours from 8 a.m. to 8 p.m. Many officials noted that a 12-hour trading day could increase trade volume, potentially boosting profits for local brokerages.
The Korea Exchange (KRX), which operates Seoul's main bourse, recently conducted a survey among local brokerages to gather opinions on extending trading hours from the current 6 1/2 hours, running from 9 a.m. to 3:30 p.m., to 12 hours. The KRX presented three options: opening the market an hour earlier at 8 a.m. and extending after-market operations until 8 p.m., or introducing a pre-market session for 30 minutes from 8 a.m.
Most respondents were favorable toward the after-market option, though opinions varied regarding the earlier start of the regular session. Concerns were raised about opening the market at 8 a.m., as it would require staff to begin work an hour earlier, affecting related activities such as executing trades and opening stock accounts.
Some officials also highlighted the challenge of additional operational costs, which would include extra systems and staffing. The Korea Finance and Service Workers' Union previously voiced opposition to longer trading hours, citing an "incomparably excessive amount of labor" for finance sector workers.
The KRX is reportedly engaging in individual discussions with local brokerages and plans to consult financial authorities once a concrete plan is developed.