(Bloomberg) -- South Korea urged local banks and financial companies to actively participate in trading the onshore won when hours extend next week. 

Domestic institutions “need to play a leading role in active market making during the extended hours” to create “a virtuous circle in which other participants will find the Korean foreign-exchange market attractive,” said Choi Ji-young, the finance ministry’s deputy minister for international affairs, in a statement from a meeting with local market participants. 

“We ask individual firms to show interest in even the most meticulous areas, including the fostering of human resources to work night shifts or abroad and the securing of a stable system for trading and settlements,” Choi said.

Starting Monday, the onshore won will trade until 2 a.m. local time, versus the current 3:30 p.m. close. Korean authorities have bolstered efforts in recent years to court foreign investors and improve market access, as the country makes a push to get its stocks and bonds added to global developed market indexes.

Korea Draws About 40 Traders for Test of Won’s Extended Hours

Choi’s remarks come after a final pilot test revealed a lack of liquidity during certain periods of the extended trading window. While Choi said a total of 12 tests since February found no big issues in trading the won under various circumstances during the extended hours, he added that maintaining adequate liquidity was key to early settlement of the new system.

“The government will spare no policy support” to help with the change, Choi said in the statement.

Korea Vows Steps to Cap Excess Volatility When Won Trades Longer

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