KRX union, DP oppose extending stock trading hours

Plans from local bourse operator Korea Exchange to extend the local stock market’s trading hours are facing resistance from unionized workers and opposition party lawmakers.

The Korean Finance & Service Workers’ Union on Wednesday called for the exchange to scrap its plan for a trading hours extension of one hour per day. The daily opening time will stay at 9 a.m., but the main bourse is seeking to change the closing time from 3 p.m. to 4 p.m.

“Korea has the longest trading hours (six per day) compared to other major Asian markets,” the union and three lawmakers from the main opposition Democratic Party told a news conference at the National Assembly.

China and Hong Kong operate four hours, followed by both Japan and Taiwan with 4 1/2 hours. Trading in India runs for 5 1/2 hours.

“Furthermore, the stock markets in these countries break for lunchtime,” the union said.

Unionists further pounded the local bourse operator for making a “unilateral announcement” about its plans for a business hours extension without talking to employees first.

The Korea Exchange had come up with the idea as part of a bigger blueprint for buoying the local stock market, which is deemed volatile. The benchmark KOSPI index is also seen to be too low compared to Korea’s economic size and status.

But union leader Kim Hyun-jung stressed that Japan’s stock market improved not due to longer trading hours, but thanks to feverishly carrying out state-led policies aimed to vitalize the market.

The local brokerage sector is barely on its feet, as more and more houses are shutting down.

Rep. Kim Hyun-mee of the Democratic Party said the extension would only lead to worse working conditions and fail to serve as the solution for boosting the lackluster stock brokerage industry.

KRX is currently set to hold more talks with the Financial Services Commission to garner approval for the extended hours.

“We’ve already reached a consensus with financial authorities,” a Korea Exchange official said. He argued the extension would have significance in terms of attracting more foreign investors and benchmarking cases in Western countries.

A large portion of bourses in Europe operate an average of eight hours a day. Both the New York Stock Exchange and the Nasdaq’s regular trading hours last 6 1/2 hours.

By Kim Yon-se (kys@heraldcorp.com)