South Korean banks are set to reintroduce night shifts as won trading hours undergo extension this year, marking a return to a practice last seen in the 1990s that had faded due to evolving working conditions. Shinhan Bank initiated night shifts for traders in September, with Korea Development Bank, Woori Bank, Industrial Bank of Korea, and NongHyup Bank following suit. Suhyup Bank is considering additional staff without specifying potential night shifts.
In response to a Bloomberg query, Industrial Bank stated, “We are analyzing our middle and back offices along with IT and other related departments and preparing for any risks that may emerge in the first stages of the FX market reform.”
Currently, Korea’s onshore dollar-won currency market operates from 9 a.m. to 3:30 p.m. Seoul time. However, the close will be extended until 2 a.m. the following morning from the second half of 2024, as announced by the government in early 2023, with initial tests scheduled for February, according to the Seoul Foreign Exchange Committee.
This move aligns with Korea’s efforts to enhance access and advocate for the inclusion of its equities in MSCI’s developed-market stock index. The authorities expressed their long-term goal of having the won trade 24 hours.
Previously, night shifts were common in Korean banks until the early 2000s when the Asian financial crisis in 1997 disrupted the practice. The widening gap between losses and gains during the crisis, coupled with a demand for better work-life balance, led to the decline of night desks by the early 2000s.
While some major banks, such as KB Kookmin Bank and Hana Financial Group Inc., are opting not to reintroduce shifts and instead relocating staff to London or New York, others are embracing the extended trading hours.
Korean labor groups express concerns about traders working until 2 a.m., citing the unprecedented nature of such shifts. Flexible working hours are proposed for now, with the decision on additional staff contingent on reforms and a better understanding of the trading volume post-implementation.
