South Korea plans 24-hour FX trading from July

South Korea will start allowing currency trading 24 hours a day starting in July. Officials announced the plan Friday as part of a broader effort to get the country recognized as a developed market.

For South Korea, which has maintained stringent regulations on currency trading since the Asian Financial Crisis struck in the late 1990s, the shift is significant. Massive sums of money left the nation back then. Major market index provider Morgan Stanley Capital International (MSCI) has stated that these limitations prevent South Korea from being promoted to developed-market status.

Finance ministry lays out currency trading reforms

Vice Finance Minister Lee Hyoung-il talked about the plans at a press conference where the ministry rolled out its economic policies for the next six months. “We will prepare in the first half a roadmap for the internationalisation of the won aimed at dramatically improving the won’s accessibility and increasing demand, such as offshore won financing,” Lee said. He told reporters the government would stick to its plan for getting into MSCI.

This isn’t the first time South Korea has loosened the reins. About two years ago, they let foreign companies trade the won from overseas. That was part of the same push to join a major global stock index. Before that happened, people could only trade dollars and won for six and a half hours each day. And you had to go through one of two domestic banking networks to do direct dollar transactions.

The government has more changes coming. There’s a new system in the works for offshore won trading. They’re cutting down on paperwork and making it simpler to register as a market participant. Other ideas include using the won for cross-border payments and overseas financing.

Getting that developed-market stamp matters a lot to President Lee Jae Myung. He made it one of his main promises after taking office in June 2025. Since then, he’s pushed through market reforms and tax changes aimed at boosting the stock market.

Things have been looking up. The KOSPI stock index did better than any other market in the world last year. It shot up 76%, the best performance since 1999. The won had a rougher time. It dropped to levels not seen since 2009 and stayed weak until late December. Then the government stepped in with measures to steady things. The currency bounced back and managed to end the year up 2.3%, breaking a four-year losing streak.

Friday’s announcement included other steps for the stock market, too. Better rules for short-selling. More corporate filings in English. Easier ways to trade securities.

Growth forecast upgraded on strong exports

The ministry also put out new economic forecasts. They’re now calling for 2.0% growth in 2026, better than the 1.8% they predicted in August. That comes after 1.0% growth in 2025. The outlook assumes domestic spending picks up and exports stay strong. They see inflation at 2.1% in 2026, the same as 2025.

Exports should grow 4.2% this year, up from 3.8% last year. Strong demand for semiconductors used in artificial intelligence is driving that, even though U.S. tariffs are slowing down global trade overall.

The semiconductor industry is getting special attention. Officials said they’ll have a five-year plan ready by the fourth quarter with financial help, tax breaks, and regulatory fixes.

There’s also a push to make South Korea one of the top three countries in AI. The government plans to support defense, biopharmaceutical, petrochemical, and steel companies, too.

Last year’s trade deal with the U.S. included a $350 billion investment package. The ministry sees that as a chance to develop shipbuilding and nuclear energy while breaking into new U.S. markets.

One more thing: tax incentives for domestic manufacturing are coming in the second half of the year. There’s a worry that too many companies are investing overseas instead of at home, which could hurt local production.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.