Financial Services Commission (FSC) Vice Chairman Kim So-young speaks at an alternative trading system (ATS) seminar jointly hosted by the FSC, Korea Financial Investment Association (KOFIA), the Korea Exchange (KRX) and NEXTRADE in Seoul, Thursday. Courtesy of FSC

The new stock exchange, intended to challenge the monopoly of the Korea Exchange (KRX), will extend the operating hours of the Korean stock market by introducing pre-market and after-market sessions, allowing stock trading for 12 hours every day, from 8 a.m. to 8 p.m.

In addition, new order types like a mid-price order and stop-limit order will be introduced, along with plans to allow competition for commissions to achieve cost reduction benefits.

These details are part of the operational plan for "NEXTRADE," an alternative trading system (ATS) that involves dozens of brokerages. This plan was revealed at a seminar jointly hosted by the Financial Services Commission (FSC), KRX, NEXTRADE, and the Financial Investment Association in Seoul on Thursday.

"Once the ATS is officially launched, stock trading hours will be extended, allowing investors who are full-time employees to conveniently invest in stocks after their working hours. Additionally, the introduction of new order types will enable investors be able to easily utilize various trading strategies," FSC Vice Chairman Kim So-young said at the seminar.

Kim said the country's stock markets are on the verge of transitioning to a model where multiple bourses operate and expressed hopes for a more efficient and convenient market through increased competition. He also urged authorities to prioritize stable and fair market management.

NEXTRADE aims to apply for a license by the end of this year and launch in March 2025. The exchange also plans to obtain additional licenses to enable trading of listed ETFs and ETNs, which are in high demand among investors due to their market liquidity.

The financial authorities note that laws or regulations that need to be revised for the operation of the ATS will be finalized within this year.