‘The biggest risk is low liquidity’: South Korea tests global demand for after-hours stock trading

South Korea’s stock exchange, Korea Exchange, is testing global demand for after-hours stock trading by extending trading hours until 8 pm for nearly all local stocks on Monday (Sep 14). This move breaks with traditional Asia trading norms and aims to attract sustained demand from global investors, particularly during European business hours.

The exchange will offer a test of its ability to sustain sufficient liquidity through a longer trading day and prove that investors actually want the extra time. Lee Young Jae, a senior investment manager, believes that longer trading windows provide more flexibility for investors and make the market more efficient. However, the success of this initiative remains a key question, as it is uncertain whether it can draw sufficient volume, especially given the thin liquidity seen after the currency-market extended hours in July.