[Edaily Reporter Kwon Oh Seok ] Starting on the 14th, the number of after-hours trading options in the domestic stock market—where investors can buy and sell stocks even after work—will increase to two. This comes as the Korea Exchange (KRX) has suddenly entered the after-hours market, which was previously monopolized by the alternative trading system Nextrade. This marks the beginning of a full-fledged head-to-head competition between the two markets to attract investors.

According to the financial investment industry on the 13th, the Korea Exchange (KRX) will launch a new after-hours market starting on the 14th, operating from 4:00 p.m. to 8:00 p.m. A head-to-head competition with Nextrade, which already operates an after-hours market during the same time slot, is inevitable. While the two exchanges will operate during the same time frame on the surface, they show distinct differences in their detailed trading structures, including eligible securities, commission rates, and procedures for handling unfilled orders.
The first point to note is the diversification of tradable securities. The KRX after-hours market will include approximately 2,500 stocks—comprising the vast majority of KOSPI and KOSDAQ-listed shares—excluding only a minimal number of high-risk categories such as stocks under regulatory supervision, those subject to investment warnings, and high-risk stocks. Thirty-eight securities firms have expressed their intention to participate. In contrast, Nextrade allows trading in only 606 securities due to regulations related to trading volume. For investors who have previously faced restrictions on trading small- and mid-cap stocks during evening hours, the Korea Exchange’s market offers relatively greater accessibility.
To prevent sharp price fluctuations, the Korea Exchange applies volatility mitigation measures identical to those in the regular trading session, including “Dynamic VI”—which triggers a 2-minute single-price trading period when a stock deviates by 3% or 6% from the previous price—and “Static VI,” which activates when a stock deviates by 10% from the previous single price.
In terms of trading hours and commissions, Nextrade holds the advantage. Nextrade begins its after-hours market at 3:40 p.m., opening 20 minutes earlier than the Korea Exchange. In terms of commission rates charged to brokerage firms, Nextrade is approximately 20–40% cheaper than the Korea Exchange. The Korea Exchange charges 0.0027209% (combined trading and clearing/settlement fees), whereas Nextrade—which does not charge clearing/settlement fees—offers lower rates at 0.00182% for market orders (takers) and 0.00134% for limit orders (makers) compared to the Korea Exchange.
Another important point to note is that on the Korea Exchange, orders not executed during regular trading hours are not automatically transferred to the after-hours market, so new orders must be submitted after 4:00 PM. In contrast, NexTrade connects the pre-market, main market, and after-hours market into a single session, so orders not executed during regular trading hours are automatically carried over to the after-hours market. Since securities firms’ “Best Execution Policy (SOR)” applies, if a specific market is not designated, orders are automatically routed to the exchange that offers the most favorable price and liquidity for investors.
Capital market experts note that while this brings positive effects such as enhanced price discovery and increased investment convenience, it may also entail side effects such as liquidity fragmentation and increased price volatility.
Yeo Mil-rim, a senior researcher at the Capital Market Research Institute, noted, “Investors can respond immediately to overseas economic indicators, corporate earnings, and geopolitical events, which could enhance price discovery,” but added, “During hours with low investor and market maker participation, bid-ask spreads may widen, and a small number of orders could have a disproportionately large impact on prices.”
He further advised, “We must continuously monitor the cost burdens and working conditions of market participants,” adding, “It is necessary to strengthen advance notifications and risk disclosures so that investors can fully recognize the risks associated with low liquidity, widened bid-ask spreads, and price volatility during night trading.”
Lee Jun-seo, a professor in the Department of Business Administration at Dongguk University, stated, “A decline in NextTrade’s trading volume and market share is inevitable,” but added, “That decline will not be catastrophic. This is because the pre-market, which plays a larger role in market volatility and as a market indicator than the after-market, is of greater importance. NextTrade should focus more on securing competitiveness in the pre-market.”
Professor Lee added, “If the concentration of trading on the Korea Exchange becomes severe, financial authorities may consider allowing NextTrade to extend its pre-market and after-market trading hours or permitting exchange-traded fund (ETF) trading to prevent NextTrade from failing. They will also need to consider the timing of the Korea Exchange’s introduction of a pre-market session.”