Markets’ 10-day closure to be first in over 30 years

The Korea Exchange, South Korea’s sole securities market operator, is bracing for the 10-day closing of the market next month, the longest in more than three decades.

The main bourse and the secondary bourse are scheduled to be dormant from Sept. 30 to Oct. 9 for the weekends and national Chuseok holiday. This is the third time for the market to close for 10 days since Kospi was launched by KRX in 1983.

In 1983 and 1984, Kospi did not open from Dec. 25 to Jan. 3 the following year to allow the market to take a year-end break. The breaks have gradually decreased since then.

Watchers, meanwhile, expressed concerns for the lengthy market closure, which could prompt upshots in the ins and outs before and after the 10-day break.

The KRX has said it is capable of embracing over 200 million quotes per day, about 10 times higher than normal, through its new trading platform introduced in 2014.

South Korea is awaiting what is considered one of the longest national holiday seasons in history, since the government designated Oct. 2 a temporary holiday. Following the first weekend on Sept. 30-Oct. 1, National Foundation Day falls on Oct. 3, followed by the three-day Chuseok holiday, the second weekend and Hangeul Day on Oct. 9. 

By Son Ji-hyoung (consnow@heraldcorp.com)