Korea Exchange Night Trading Hits One-Month Mark: High Retail Investor Share Sparks Liquidity Concerns

According to South Korean media outlet EToday, the Korea Exchange’s (KRX) after-hours trading market, which supports overnight trading for all listed stocks, has completed its first month of operation, with analysis revealing that an imbalanced market participation structure has emerged as the primary issue. KRX data shows that during the first week following the launch of the after-hours session (September 14 to 18), retail investors accounted for 90.4% of trading volume, while foreign and institutional investors represented only 6.7% and 2.6%, respectively. An investor structure overly skewed toward retail traders may lead to inadequate market liquidity and amplify price volatility for individual stocks. To prevent the market from becoming a purely formal extended trading session, further improvements to the price formation mechanism, stronger overnight trading regulation, and the promotion of reforms in information disclosure, shareholder returns, and the tax system remain necessary.