Foreign investors have significantly increased their presence in stock trading on NextTrade (NXT), South Korea’s alternative trading system (ATS), which launched in March 2025. (Yonhap)
SEOUL, June 9 (Korea Bizwire) — South Korea’s alternative trading system (ATS), NextTrade (NXT), is rapidly gaining traction as a go-to platform for off-hours stock trading, with pre-market and after-hours volumes soaring fivefold over the past two months. Despite the momentum, the company says it will prioritize stability over aggressive expansion.
According to figures released by NextTrade on June 8, the platform recorded 77.5 million shares traded with a transaction value of 2.5 trillion won ($1.8 billion) on June 5 alone — the highest daily off-hours turnover since its launch on March 4, 2025. Compared to March 31, when trading was expanded to 796 stocks, daily volume jumped 5.1 times, and total value increased 5.5 times.
Pre-market activity (8:00–8:50 a.m.) is particularly robust, accounting for higher average daily volume and transaction value over the past month than after-hours trading (3:40–8:00 p.m.). Analysts attribute this to retail investors eager to respond swiftly to overnight developments on Wall Street.
As of June 5, NextTrade accounted for 15.1% of total daily trading volume and 30% of the transaction value across all South Korean exchanges, including KRX’s main and Kosdaq markets — up from just 6.6% and 16.3%, respectively, at the end of March.
However, the platform remains constrained by regulatory caps. Under current rules, if NextTrade’s six-month average daily volume exceeds 15% of total market volume, trading is suspended the following day.
On March 4, at the opening ceremony of South Korea’s first alternative trading system (ATS), “NextTrade (NXT),” held at the Financial Investment Center Building in Yeouido, Yeongdeungpo District, Seoul, attendees including NextTrade CEO Kim Hak-soo, Financial Services Commission Chairman Kim Byung-hwan, Financial Supervisory Service Governor Lee Bok-hyun, and Korea Exchange Chairman Jung Eun-bo participate in the opening celebration. (Photo courtesy of Yonhap)
A similar 30% threshold applies to individual stocks. While these caps are unlikely to be breached in the short term, many in the financial industry are calling for regulatory revisions to reflect the platform’s growing role.
“We are in ongoing discussions with regulators,” a NextTrade representative said. “The continuity of investor access and trading opportunities is a core concern we’re communicating to authorities.”
Amid its surge, NextTrade has deferred its “second-phase opening” — originally scheduled for September — to late October. This phase would enable all 14 participating brokerages currently offering off-hours trading, such as Meritz Securities and KakaoPay Securities, to also engage in regular-session trading. Once implemented, the total number of participating firms will grow from 15 to 29.
The delay stems from the need for system upgrades and coordination with the Korea Exchange (KRX), which is planning routine system enhancements in October. Recent glitches at major securities firms have heightened concerns around operational readiness, prompting NextTrade to proceed cautiously.
Plans to introduce ETF trading — also part of the platform’s long-term strategy — are proceeding more gradually than initially expected. Although a presidential decree amending the Capital Markets Act to permit ETF trading on ATS platforms recently passed the Cabinet, final implementation awaits regulatory approval.
“Our goal remains to launch ETF trading within 2025,” a NextTrade official said. “But this depends on the pace of regulatory clearance. Internally, there’s also recognition that thorough preparations, including coordination with liquidity providers and fund managers, are essential — making a late-year launch more realistic.”
As South Korea’s capital markets evolve, NextTrade is emerging as a key player. Yet its cautious approach signals a broader commitment to institutional credibility and infrastructure resilience, even amid growing investor appetite for flexible trading hours.
Ashley Song (ashley@koreabizwire.com)
