Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBy Cynthia Kim and Yena ParkFri, June 26, 2026 at 3:48 AM GMT+2 4 min readBy Cynthia Kim and Yena ParkSEOUL, June 26 (Reuters) - 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 2024 martial law decree.Now his job will be stretched around the clock as South Korea's long-cloistered currency opens up to a 24-hour trading cycle from July 6, with banks trialling the system from Monday.That's a transition even a veteran dealer like Namkoong calls "daunting", as Seoul tears down safeguards in place since the won's collapse during the 1997 Asian Financial Crisis."When I first came to the market, it was a 9-to-3 game," said Namkoong, 47, who is part of the 37-member FX trading team at Hana Bank in Seoul, the country's biggest forex bank by trading volume. "You could count the participating financial institutions on one hand.""Now, the market has expanded exponentially," he said, surrounded by a dozen empty coffee cups and eight monitors blinking FX conversion orders."I'm seeing a significant increase in demand for won assets based on the many financial institutions that are inquiring about them. We are afraid that our workload will increase significantly."Seoul's priorities have reversed from three decades ago: an open, fully accessible currency is a requirement in its pursuit of index provider MSCI's coveted "developed market" designation, which would raise the country's profile among global investors.But there are clear risks to an always-on won. Languishing near a 17-year low versus the dollar, the currency is particularly vulnerable to pockets of thin liquidity that could turn modest flows into disproportionately large price swings.Ironically, the world-beating doubling of the benchmark KOSPI share index to all-time highs this year is reinforcing won weakness, as the heady gains spurred overseas funds into record selling to book profits or rebalance portfolios. At the same time, South Korean investors continue to favour U.S. equities, investing at an unprecedented pace.WON GUARDRAILSTo guard against liquidity gaps and trading disruptions, reforms include permits for offshore investors to hold and trade the currency, an offshore won settlement system and an overdraft policy."Previously, foreign financial institutions were only able to convert money," said a government official in charge of FX policies, "but through the offshore won settlement system, they will be able to directly hold and utilize the won."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info