SEOUL, July 1 (Korea Bizwire) – The Korea New Exchange (KONEX) market, the new stock market launched a year ago to foster the growth of tech start-ups and lend support to the government’s “creative economy” vision, will get a boost from measures by the financial regulators.
The Financial Services Commission said on June 30 that it would relax the regulation on the amount of wrap account entrustment while reducing the minimum transaction volume to 1 share from the current 100.
As of June 27, there are 55 firms listed on the KONEX market with the market capitalization of 1,181.5 billion won. The market cap volume is more than double that of the initial market value of 468.9 billion won with 21 publicly traded firms. As part of the measure to encourage more investment in the market, the regulators will reduce the minimum wrap account entrustment amount to 100 million won from 300 million won.
Currently any individual investor with investment funds below the 3-million-won threshold level had to participate in the KONEX market indirectly through funds, investment trusts, or wrap accounts. The new measures are expected to stimulate direct participation of individual investors in the market.
The commission will also facilitate listing of KONEX firms on the KOSDAQ market as long as they meet certain qualifications. But the KOSDAQ stocks of firms that have benefited from the fast-track IPO process will be indicated in special remarks as a way to protect investors.
Written by Sean Chung (email@example.com)