- Nextrade records 30% share of Korea’s stock market.
- Extended trading hours, lower fees attract retail traders.
- Potential regulatory caps could limit future growth.
South Korea’s Nextrade has captured nearly 30% of the national $2.4 trillion stock market trading activity since its March 2025 launch by extending trading hours and reducing fees.
Significant market shifts challenge Korea Exchange’s dominance, as Nextrade’s retail investor-driven liquidity grows, prompting potential regulatory changes.
Nextrade has rapidly captured close to 30% of the South Korean stock market. This expansion resulted from offering extended trading hours and competitive fees, significantly impacting the established Korea Exchange’s (KRX) dominance in the market.
Market Dynamics and Key Players
Key players include Nextrade’s CEO Kim Haksoo and the Head of Business Strategy, Kim Young-don. The platform’s growth represents a shift towards more retail trader engagement, emphasizing the changing landscape of South Korea’s financial markets.
The emergence of Nextrade has driven liquidity and caused shifts within South Korea’s stock trading, challenging KRX’s long-standing market hold. The retail sector, making up a significant portion of Nextrade’s users, indicates a growing trend of increased retail participation in stock trading.
“It’s unprecedented globally. If you look at other similar markets with one large exchange and smaller bourses, such as Australia and Japan, Nextrade’s expansion has been very rapid.” – Kang Sohyun, Senior Research Fellow, Korea Capital Market Institute
Lower fees introduced by Nextrade have prompted the KRX to reduce its fees by up to 40%, the first such reduction in two decades. Such financial tactics reveal the competitive strategies companies are employing amid intense market redistribution.
Future Outlook and Potential Challenges
The Korea Capital Market Institute considers Nextrade’s expansion as globally unique given the rapid market share gain. Growing pains include possible regulatory caps, indicating that rule changes might be required to sustain future trading momentum and maintain competition.
Looking forward, potential outcomes include adjustments to regulatory limits, which currently cap individual stocks at 30% and aggregate shares at 15%. These changes could foster continued growth for Nextrade and further reshape the competitive dynamics in South Korea’s financial landscape.
