Korea Exchange Chairman Jung Eun-bo has ruled out any further delay to the September 14 implementation date for extended stock market trading hours.
"Not only large firms but most mid-sized securities companies have agreed to participate, meaning over 90% of market share will be covered by the extended trading hours," Jung said. "There are no obstacles to implementation."
His remarks drew a clear line against securities industry pushback citing IT system and labor burdens as reasons why even a September launch would be difficult.
Speaking to reporters at the 17th Financial Investment Professionals Marathon (Bulls Race) hosted by the exchange on May 21, Jung said, "A significant number of securities firms have indicated they would have no problems if given until September 14."
The Korea Exchange had originally planned to extend trading hours at the end of June but postponed the timeline by approximately two and a half months, citing securities firms' IT system burdens.
Starting September 14, the exchange will operate a pre-market session from 7:00 to 7:50 a.m. and an after-market session from 4:00 to 8:00 p.m., in addition to the current regular trading hours of 9:00 a.m. to 3:30 p.m.
However, following a stakeholder meeting held at the National Assembly the previous day where securities firms and asset managers voiced complaints that even September implementation would be difficult, Jung pushed back, arguing that sufficient preparation time had been secured.
"The simulation period has also been extended from three and a half months to five and a half months," he said. "Isn't that enough preparation time?"
He added, "By September, not only large and mid-sized securities firms but most small firms will participate, bringing in over 90% of the market by trading value."
Jung also reiterated the necessity of extending trading hours. "From the perspective of IT staff, the longer the preparation period the better, but for 15 million investors, the longer the trading hours the better," he said. "We need to align with international standards, and we cannot wait indefinitely until everyone is ready."
Regarding the temporary trading fee reduction implemented by the exchange for two months starting late last year, Jung assessed that results fell short of expectations. "The price elasticity of demand was not as significant as we thought," he explained, noting that a simple fee reduction alone did not substantially increase trading incentives. However, he left open the possibility of flexibly adjusting fee policies depending on market conditions if Nextrade (NXT) begins trading exchange-traded funds (ETFs) starting in the fourth quarter.
On the competitive landscape with Nextrade going forward, Jung identified "a level playing field" as a key priority. "Initially, protecting the new exchange was necessary, but now its market share has risen to 35-40%," he said. "Meaningful competition requires creating equal competitive conditions in terms of trading hours and fees."
He added, "Nextrade is not opposing the exchange's extension of trading hours, which shows that Nextrade has established itself in the market and built competitiveness."
However, regarding the structure where Nextrade competes on fees without bearing costs for listing, disclosure, and market surveillance, Jung acknowledged that "there may be views that this is unfair," while noting that "from the consumer's perspective, what matters is not who plays what role but the benefits. Ultimately, competitive conditions must be made equal."
On the recent stock market rally, he mentioned the need for pace control. "We could surpass 6,000 and even reach 7,000, but pace is important," he said. "We need to consolidate as we go—if we overpace, we could burn out."
The day's event was held under the theme "Fearless Challenge! New Future!" to commemorate the 70th anniversary of the Korean stock market's opening. Approximately 7,000 financial investment industry employees and their families participated. A donation of approximately 200 million won, combining participation fees and sponsorship funds, will be delivered to social welfare facilities in Yeongdeungpo-gu and Busan through the Green Umbrella Children's Foundation.
In his opening remarks, Chairman Jung said, "The steps taken by financial investment professionals will serve as the foundation for a premium capital market. The exchange will also continue to run toward the future of the capital market."
