Finance Minister Choo Kyung-ho speaks during a press conference at the Korea Press Center in Seoul, Thursday. Courtesy of Ministry of Economy and Finance

By Lee Min-hyung

Korea will extend the trading hours of its foreign exchange market to 2 a.m. from the current 3 p.m. as early as the second half of 2024, in a bid to attract more foreign capital and reduce market volatility, Finance Minister Choo Kyung-ho said during a press conference, Thursday.

"We will increase publicity on the issue until then, and do our best to help overseas financial institutions join the market," he said.

According to the decision, Seoul's foreign exchange market will open at 9 a.m. and close at 2 a.m. the following day.

The market has long been considered inaccessible to attract foreign financial firms, so calls have grown that it should be more open and competitive, according to Choo.

"We are aware that our financial policies should be more advanced in line with the scale and the global presence of the economy," he said. "When regulations are eased, diverse market participants will join, and the market's size will also grow bigger, which will help reduce volatility of the foreign exchange market."

The remark came amid lingering woes over the unstable won-dollar exchange rate which topped the worrying level of 1,440 won last October, even if the figure has been on a path to stabilization more recently.

"The won-dollar exchange rate has dropped to the mid-1,200 won level, and the corporate bond yield rate and the commercial paper yield also entered the 4 percent range, but uncertainties still remain in place," he said. "We will enhance monitoring of every corner of the economy, and take swift measures with the relevant authorities when necessary."

The finance minister also reiterated his strong willingness to invigorate investment, in a move to boost domestic demand amid growing fears of a recession.

"Expanding investment is most important when promoting domestic demand," he said. "Toward that end, we will keep providing a series of corporate tax benefits. The government will do so until the shrinking investor sentiment revives."

He also underscored the importance of easing the so-called "Korea discount" by removing some outdated policies blocking foreign capital inflow. The term is often used to describe the lower valuation of local shares compared to their global peers due to the nation's inherent geopolitical risk factors and rigid corporate culture.

"To increase foreign investors' access (to the local stock market), we will no longer force foreign investors to register their information before making investments here," he said. "Listed firms will have to provide their key business information to investors in English as well as Korean from the beginning of next year. We will also come up with measures to revamp dividend-related policies, so as to ensure long-term investments."