Korea’s longer trading push fuels hiring, labor tensions

South Korean brokerages and asset managers are racing to prepare for longer stock trading hours, scrambling to hire staff and overhaul systems as the Korea Exchange pushes ahead with one of the country’s biggest market structure changes in years.

But the transition is also exposing growing strains across the financial industry, with labor unions protesting heavier workloads and market participants warning that key trading rules for exchange-traded funds remain unresolved just months before launch.

According to industry officials on Monday, securities firms and asset managers are reviewing additional hiring ahead of KRX’s planned expansion of trading hours in September.

“Brokerages are already struggling with preparations for extended trading hours,” a brokerage official said. “Workloads for IT and digital infrastructure staff have risen sharply, and we are reviewing additional hiring and workforce management measures.”

The pressure has intensified since the launch of South Korea’s first alternative trading system in March 2025, which already forced brokerages to strengthen trading systems and staffing.

Asset managers are also bracing for operational burdens as ETF trading volumes surge. Industry officials estimate ETF turnover has climbed to around 400 trillion won ($285 billion), heightening concerns over shortages of traders and liquidity management personnel.

“Managing ETFs during extended trading hours would require more traders, system upgrades and regulatory changes,” an asset management industry official said. “The current workforce is not sufficient, and additional hiring may be unavoidable.”

KRX plans to extend trading hours from the current 6 1/2-hour session to as long as 7 a.m. to 8 p.m., including premarket and after-hours trading.

The exchange originally planned to launch the system on June 29 but delayed implementation to Sept. 14 after concerns emerged over system readiness and market stability. KRX is currently conducting mock trading sessions with member firms as part of system testing.

At the center of the industry’s concerns is ETF trading during extended hours.

KRX initially allowed securities firms to decide whether ETF liquidity providers would participate during extended sessions, but the exchange is now reviewing mandatory participation after concerns surfaced over wider bid-ask spreads and sharp price volatility.

The exchange is also considering maintaining the current ETF creation and redemption deadline system to reduce the administrative burden associated with longer trading hours.

Several operational details remain unresolved.

KRX is still reviewing whether ETF creation and redemption requests submitted during extended trading hours would qualify as same-day transactions, as well as approval procedures involving the Korea Securities Depository and fund administration companies.

Another proposal under review would limit pre- and after-market ETF trading to products specifically applied for by asset managers in an effort to minimize price discrepancies and investor losses.

Industry officials warn that thin liquidity during extended sessions could trigger severe price distortions.

“For ETF trading to function smoothly during extended hours, liquidity provider activity and the creation-redemption process need to operate together,” another official from an asset management firm said. “Without clear operational standards, confusion in the market is unavoidable.”

Another official warned that low trading volume outside regular market hours could amplify volatility.

“If buy orders suddenly surge when only a few quotes are available, prices could jump sharply,” the official said. “Trading volume during extended hours will likely remain much lower than during regular sessions.”

Labor tensions are also escalating.

The Korea Financial Industry Union has continued protests and rallies against the plan, arguing that worker concerns have not been adequately reflected in the process and calling on the Korea Exchange to scrap what it described as an unjustified extension of trading hours.