Korea Exchange Plans Extended Trading Hours Amid Record Stock Rally

The Korea Exchange has announced intentions to extend daily trading hours for both the KOSPI and KOSDAQ indices, responding to a surge in market activity and record closing levels across key benchmarks. The proposal, expected to take effect in early 2026, would add 30 minutes to the current session, shifting the close from 3:00 PM to 3:30 PM KST. This follows a period of robust performance, with the KOSPI index surpassing 3,500 points for the first time in 2026, a 17% year-to-date gain. The KOSDAQ, a bellwether for tech and growth stocks, also posted a new high, reaching 1,024 points in January. The extension comes as foreign investment inflows into South Korean equities have reached $12.3 billion in the first quarter of 2026, driven by strong earnings from tech firms such as Samsung Electronics (005930.KS) and SK hynix (005380.KS). With these stocks contributing over 40% of the KOSPI's market capitalization, their continued outperformance has heightened demand for extended market access. Analysts suggest the change could further enhance market depth and reduce after-hours volatility. Market participants, including institutional investors and trading desks, are already adjusting strategies in anticipation of the shift. Brokers report increased order volumes during the final hour of trading, signaling growing interest in real-time price discovery. The change may also influence trading patterns on regional exchanges, particularly Tokyo and Hong Kong, where South Korean stocks are actively traded. The Korea Exchange emphasized that the decision is part of a broader modernization initiative to align South Korea’s market infrastructure with global standards. Technical upgrades and regulatory reviews are underway to support the new schedule, with implementation expected by Q2 2026.