Nextrade has captured nearly 30% of South Korea’s $2.4 trillion stock market

South Korea’s brand-new stock exchange Nextrade has bulldozed its way into the country’s $2.4 trillion equity market, stealing nearly 30% of total trading value just months after launching in March. That’s up from under 4% at the start.

The platform’s longer hours and lower fees helped it snatch market share fast; some stocks, like Doosan Enerbility, are now traded more on Nextrade than on the 70-year-old Korea Exchange (KRX).

Nextrade runs 12 hours a day, nearly double KRX’s 6.5-hour window. It opens before the KRX bell rings and keeps trading deep into the evening.

Retail traders have flooded in, especially during the 50-minute pre-market session, which now sees more action than Nextrade’s own post-market hours. On KRX, trading runs from 9 a.m. to 3:30 p.m. On Nextrade, you can buy and sell from early morning till 8 p.m.

Retail traders move to Nextrade en masse for speed and flexibility

The shift has been powered by South Korea’s retail army, often called “ants.” These small traders make up 86% of Nextrade’s activity, pouring cash into crypto, Magnificent Seven stocks, and even leveraged U.S. ETFs. They want speed, longer hours, and cheap fees; and Nextrade apparently delivers.

Here’s the kicker: transaction fees are 20–40% cheaper than KRX. You also get more price-setting options. If you don’t tell your broker which platform to use, it auto-selects the one offering the better deal. This price-based system has helped Nextrade grab order flow quickly.

Nextrade doesn’t support IPOs, but that hasn’t stopped it from exploding in popularity. Foreign investor participation is also climbing, up to 11% from basically zero at launch. Domestic institutions, though, are still mostly sitting out. Korean media blame “system stability worries,” though Nextrade hasn’t had any major outages.

As Nextrade grows, KRX is feeling the pressure. Regulators have been caught flat-footed. They rushed to review rules that cap alternative trading systems (ATS). The Financial Services Commission (FSC) was forced to temporarily lift the 30% single-stock volume cap in September after 500 stocks broke the limit.

If they hadn’t, Nextrade would’ve had to freeze trading on a ton of names. “It would become impossible for investors to trade during their commute to office,” the FSC said in a public statement.

Regulators cap Nextrade’s growth while Seoul pushes U.S. tariff deal

But the 15% overall market volume cap still stands. To stay under that line, Nextrade suspended nearly 150 stocks in August and September. That’s why the platform’s market share by volume is smaller than by value.

Compare that to the U.S., where 80+ ATS platforms handle just 20% of market value, or Japan, where three ATS players split just 10%. Nextrade’s growth is reportedly on another level.

“It’s unprecedented globally,” said Kang Sohyun, senior research fellow at the Korea Capital Market Institute. “If you look at other similar markets with one large exchange and smaller bourses, such as Australia and Japan, Nextrade’s expansion has been very rapid.”

The legal foundation for Nextrade was laid way back in 2013, part of South Korea’s plan to modernize its capital markets. But things stalled until 2023, when Nextrade got preliminary approval. Its CEO, Kim Haksoo, used to be a financial regulator himself.

Meanwhile, South Korea’s broader economic strategy is shifting fast. Presidential policy chief Kim Yong-beom said Sunday the country had made “substantial progress” in tariff talks with the United States.

Kim, alongside Seoul’s industry minister and other officials, met U.S. negotiators in Washington last week. At stake is a $350 billion investment fund, key to a deal that capped U.S. tariffs on Korean goods at 15%.

That same weekend, top Korean tycoons, from Hyundai Motor, SK Inc., and Hanwha, played golf for over seven hours with Donald Trump at Mar-a-Lago. Executives from Japan and Taiwan also joined, according to Yonhap and other local media. Trade and investment likely came up.

Trump, who often mixes business with golf, has used the Florida estate for dealmaking with global power players. And with the Asia-Pacific Economic Cooperation summit around the corner, Kim said the odds of finalizing a trade deal have now “increased.”

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