Summary："Korea's 24-Hour Trading Revolution Sparks Widespread Anxiety Among Local Dealers"SEOUL, June 26 - O

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"Korea's 24-Hour Trading Revolution Sparks Widespread Anxiety Among Local Dealers"

SEOUL, June 26 - Over an 18-year career trading currencies in Seoul, Namkoong Taehun was on the front lines of the collapse of Lehman Brothers, the post-Brexit plunge in the pound, and the won's dramatic tailspin after South Korea's 2022 candlelight protests. However, the veteran trader is now bracing for a different kind of challenge: the dawn of 24-hour trading in Korea's foreign exchange market.

The Korea Exchange (KRX) and the country's major banks have announced plans to introduce around-the-clock trading, aligning with the global shift towards continuous trading driven by the rise of electronic trading platforms and the increasing demand for flexibility from investors. While proponents argue that this move will enhance market liquidity and competitiveness, many local dealers are expressing concerns about the potential disruption to their traditional business models.

A key development driving this revolution is the growing presence of global asset managers and hedge funds in Korea's financial markets. These institutional investors are accustomed to trading across time zones and are pushing for extended trading hours to optimize their investment strategies. In response, the KRX has formed a task force to explore the feasibility of 24-hour trading, with a pilot program expected to launch later this year.

Industry insiders are divided on the impact of 24-hour trading. Some argue that it will attract more foreign capital and boost market efficiency, while others worry that it will lead to increased volatility and create new risks for local dealers who are not equipped to handle the demands of continuous trading. "The biggest challenge will be managing risk across different time zones," said Kim Jinho, a financial analyst at Hyundai Securities. "Local dealers will need to adapt their risk management systems and strategies to cope with the changing market landscape."

As Korea's financial markets prepare for the potential shake-up, market participants are bracing for a period of adjustment. While the introduction of 24-hour trading is likely to bring new opportunities, it also poses significant challenges for local dealers. To remain competitive, they will need to invest in new technologies and develop more sophisticated risk management strategies. In conclusion, Korea's 24-hour trading revolution is set to reshape the country's financial landscape, and local dealers must be prepared to evolve in order to thrive in the new environment.