Korea Exchange

When the KSE opened its market in 1956, there were 12 listed companies, and the market was dominated by bond trading. However, the KSE grew rapidly in a short period, owing to the government policies aimed to develop a capital market that supports the national economic development plans and to promote the corporations to go public.

The KSE, which gives a priority to the efficient and effective transaction of securities and establishment of fair market price, has made sustained efforts in improvement of its trading systems in order to support the quantitative growth. For the past half century, the KSE has been busy with creating and improving the market infrastructure. Since the introduction of the open outcry system in 1975, the computer trading system was introduced in 1988 and used in parallel with the open outcry system until September 1997 when the KSE has fully automated its trading system.

In order to facilitate effective book-entry transfer and deposition of the securities, the Korea Securities Depository (KSD) was established 1974, and to ensure efficient computerization of the securities markets, the Korea Securities Computer Corporation (COSCOM) was established in 1977. With the growth of the securities market, both comprehensiveness and size, the KSE was moved into the present location in Yeoido, thus creating a Korean version of "Wall Street".

In 1992, the KSE removed the investment ceiling imposed on the foreign investors, thus facilitating direct foreign investment in the listed Korean companies. Then, the stock index futures market was launched in 1996 and the stock index options market in 1997 respectively. Subsequently, the KSE has emerged as one of the important security markets in the world.

Presently, the investors from some 60 different countries, including Japan, UK and USA, conduct their trading on the KSE market through over 50 domestic and foreign member securities firms.

For the protection of investors and establishment of fair market price, the KSE is taking following actions:

• Enhancing the investor confidence by recruiting and listing the companies with profitability, stability and growth potential;
• Obliging the listed companies to promptly disclose corporate information necessary for making investment decisions, and providing timely access to such disclosure information through the disclosure information system which investors around the world can access on real-time basis;
• Establishing and operating an advanced, comprehensive market surveillance system, including stock price watch and monitoring of trading activities, thus building a transparent securities market; and
• Intensifying the investigation on unfair trading in cyber sphere.

Then, to ensure the connectivity and partnership with the exchanges in the world, and to meet the challenges associated with the globalization and enhancement of user convenience, the KSE is strengthening its international cooperation.

The KSE is also making an effort to reform the market structure in response to both the internal and external competition, particularly those associated with the overseas listing of domestic companies and foreign businesses entry into domestic market. For instance, we are in the process of bringing down the barriers to market entry and harmonizing our trading and settlement systems with the global standards.

Korea Exchange

Korea Exchange (KRX) is the sole securities exchange operator in South Korea. It is headquartered in Busan, and has an office for cash markets and market oversight in Seoul.

Type: Stock exchange
Location: Busan & Seoul, South Korea
Coordinates: 35°08′12″N 129°03′53″E (Busan)
Founded: 1956
Key people: Sohn Byung-doo (Chairman & CEO)
Currency: South Korean won
No. of listings: 2,445 (as of May 2021)
Market cap: ₩2,604 trillion KRW ($2.3 trillion USD)
Indices: KOSPI
KOSDAQ
KRX 100
Website: www.krx.co.kr
Website: eng.krx.co.kr

History

The Korea Exchange was created through the integration of Korea Stock Exchange (KSE), Korea Futures Exchange and KOSDAQ Stock Market under the Korea Stock & Futures Exchange Act. The securities and derivatives markets of former exchanges are now business divisions of Korea Exchange: the Stock Market Division, KOSDAQ Market Division and Derivatives Market Division. As of Dec 2020, Korea Exchange had 2,409 listed companies with a combined market capitalization of ₩2,314 trillion KRW ($2.1 trillion USD). The exchange has normal trading sessions from 09:00 am to 03:30 pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[3]

On 22 May 2015, the Korea Exchange joined the United Nations Sustainable Stock Exchanges initiative in an event with the UN-SG Ban Ki-moon in attendance, as well as senior officials from UN Global Compact and UNCTAD.

Traded Instruments

KOSPI Market Division

• Stocks
• Bonds
• Exchange Traded Funds (ETFs)
• Exchange-Linked Warrants (ELWs)
• Real Estate Investment Trusts (REITs)

KOSDAQ Market Division

• Stocks

Derivatives Market Division

• Index Instruments: KOSPI 200 Index Futures, KOSTAR Futures, KOSPI 200 Index Options
• Single Stock Futures
• Equity Options
• Interest Rate Instruments: 3-Year KTB (Korea Treasury Bond) Futures, 5-Year KTB Futures, 10-Year KTB Futures
• Foreign Exchange Instruments: USD Futures, JPY Futures, EUR Futures, USD Options
• Commodity Instruments: Gold Futures, Mini-gold Futures, Lean Hog Futures

Source: Wikipedia

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