SEOUL, Jan. 30 (Korea Bizwire) — Six years after being designated as a public institution, Korea Exchange (KRX) was finally freed from government regulation that included budget controls and audits, effectively freeing it to move forward with expansion in overseas markets.
While it was listed as a public institution, KRX’s business activities were been evaluated on an annual basis by the Ministry of Planning and Strategies. Under those circumstances, it could not actively push for overseas projects, which inevitably cause short-term losses, as they require massive manpower and spending.
Now, as a private institution, it is expected to accelerate its IT system exports. Next month, it will provide its IT system to Azerbaijan, the sixth export of its stock trading system. In addition, it will set up joint ventures with overseas exchange markets and seek other mergers or acquisitions. It currently runs two joint ventures in Laos (with a 49% share) and Cambodia (with a 45% share).
An official at KRX said, “In order to raise our competitiveness in the global market and to establish overseas footholds, we are open to M&A opportunities anytime and anywhere.”
KRX is also expected to adjust its manpower management system, as it is now able to make the best use of its staff, in a re-organization that aligns with its business strategy. These types of managerial changes required governmental approval in the past.
Choi Kyoung-soo, CEO of KRX, recently announced that it would reinforce marketing activities to raise its sales ability by setting up marketing teams in every department. Also, KRX is reconsidering its salary system for its entire staff, as certain benefits were previously limited to those in positions higher than managers.
With its removal from the public institution list, KRX is expected to be listed on the bourse. An official at KRX said, “The IPO was our long-term project, and the capital to be raised by the listing will be used to raise our competitiveness to leap forward to one of the top seven global exchanges.”
Meanwhile, to prevent KRX from reverting back to its lax management style, it changed its articles of association to receive operational evaluations from the Financial Services Commission (FSC) on an annual basis.
By M.H. Lee (email@example.com)