Korea Exchange, Domestic Market Opening Decision at 7:30 AM... Falling Anticipations

Financial Market Turmoil Concerns

Won/Dollar Exchange Rate Hits Record High in 2 Years and 1 Month

Korea Exchange announced plans to confirm whether the domestic market will open at 7:30 AM on the 4th.

President Yoon Suk-yeol declared a state of emergency on the night of the 3rd, leading to discussions about whether to open the domestic market, but no conclusion was reached.

Korea Exchange explained in a message to reporters that "after closely monitoring the trading trends of overseas products related to our market overnight, we will announce whether the market will operate normally around 7:30 AM on the 4th."

The domestic market is expected to be affected by the shock of the first emergency declaration in 45 years.

As President Yoon declared a state of emergency on the 3rd, the financial market is expected to face turmoil on the 4th. The news of the emergency declaration spread until 10:23 PM the previous day, causing rapid movements in the indicators related to the stock market, which had been stable after the National Assembly's resolution.

The Won/Dollar exchange rate, which had risen to the 1440 won range due to the emergency declaration, traded at 1425 won after reducing the upward surge. The government extended the trading hours of the foreign exchange market from 2 PM, aligning with the London financial market closing time since July. On this day, the Won/Dollar exchange rate closed at 1425.00 won, up 23.70 won from the previous week's trading (9 AM to 3:30 PM). Before the emergency declaration, the Won/Dollar exchange rate was 1402 won, jumped to the 1410 won range after the declaration, and then rose again to the 1440 won line. At one point, it peaked at 1442.00 won, marking the highest level since October 25, 2022, when it reached 1444.20 won.

The financial market is in an unavoidable state of turmoil. Despite the National Assembly's resolution on the emergency declaration and the subsequent 6-hour resolution, the government has no choice but to react to the situation.

The financial authorities have expressed their intention to actively intervene in market stability. Choi Sang-mok, head of the planning and coordination office, stated, "We will mobilize all possible measures for financial and foreign exchange market stability, including unlimited liquidity supply."

Reporter Oh Jung-min, Hankyung.com, blooming@hankyung.com