SIGNALCapital Markets·Jul 3, 2026, 5:54 AMSignal75Short term

Scarred by ‘97 Crash, Korea Nervously Opens 24-Hour Won Trading - Bloomberg.com

Scarred by ‘97 Crash, Korea Nervously Opens 24-Hour Won Trading Bloomberg.com

Why this matters
Why now

Amidst global geopolitical uncertainties and a desire to reduce reliance on the US dollar, Korea is taking steps to enhance its currency's international standing.

Why it’s important

This move signals a growing trend of nations seeking greater financial autonomy and currency internationalization, potentially influencing global capital flows and foreign exchange market structures.

What changes

The Korean Won now has 24-hour trading, increasing its accessibility and liquidity for international investors and potentially reducing the US dollar's dominance in certain transactions.

Winners
  • · South Korea
  • · International investors
  • · Korean financial institutions
Losers
  • · US dollar (marginal)
  • · Less accessible currencies
Second-order effects
Direct

Increased trading volume and volatility for the Korean Won.

Second

Other nations may follow suit, accelerating de-dollarization efforts in emerging markets.

Third

A fragmentation of global currency markets and a multi-polar system of reserve currencies over the long term.

Editorial confidence: 95 / 100 · Structural impact: 60 / 100
Original report

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