KRX to Expand Customized One-on-One Value-Up Consulting in Collaboration with KLCA

The Korea Exchange (KRX) will expand customized one-on-one value-up consulting in collaboration with the Korea Listed Companies Association (KLCA) and the KOSDAQ Listed Companies Association to support small- and medium-sized listed companies in mapping out corporate value enhancement plans.

The KRX has been conducting one-on-one consulting to support small and medium-sized listed companies with insufficient human and physical infrastructures to establish and disclose corporate value enhancement plans in the implementation of a valuation program launched in May 2024.

In 2024, the KRX completed consulting for a total of 55 companies; nine were KOSPI-listed companies and 46 were KOSDAQ-listed companies.

In the second year of the implementation of the consulting, the KRX is expanding the scope and scale of value-up consulting and prioritizing support for companies that are willing to participate in value-up disclosure to promote small listed companies’ participation in the value-up program.

The KRX has been expanding consulting targets to companies with total assets of less than 500 billion won (previously 300 billion won for KOSPI-listed companies and 150 billion won for KOSDAQ-listed companies). It has expanded the consulting scale to a total of 120 companies.

The KRX has been strengthening connections with value-up disclosures. It has been prioritizing companies with plans to participate in value-up disclosures as consulting targets to boost the effectiveness of value-up consulting.

The KRX will hold briefings and workshops to introduce disclosure practices of companies to companies applying for consulting, so that they will be linked to actual value-up planning and disclosure.

Chung Eun-bo, chairman of the Korea Exchange poses for a photo with Lee Bok-hyun, chairman of the FSS, Yoon Han-hong, chairman of the National Assembly's Political Affairs Committee, Kim Hak-soo, CEO of the NXT, and Kim Byoung-hwan, chairman of the FSC, pose for a commemorative photo at a ceremony held in honor of the opening of the NXT in Seoul on March 4. (Photo: KRX)

NXT Enabling Longer Trading Hours

The Nexttrade (NXT), the first alternative exchange in the Korean stock market, made its highly expected debut on March 4.

In addition to the existing KRX, the NXT has become another stock market where securities can be traded. Alternative exchanges have longer stock trading hours and lower fees than regular exchanges.

Thanks to the birth of the NXT, stock trading can be carried out 12 hours a day. In addition to the regular main market time (9 a.m. to 3:30 p.m.), there will be a pre-market time from 8 a.m. to 8:50 a.m. and a post-market time from 3:30 p.m. to 8 p.m.

This makes it easier to trade stocks when people are typically on their way to work and when they’re on their way home.

To prevent price manipulation, trading will be suspended for 10 minutes before the start and end of regular markets.

Since its launch, 28 securities companies have participated on the NXT. They accounted for 87 percent of the trading volume.

The NXT has diversified asking prices. A stock market investor will be able to trade at the market price as before, and at four designated prices.

In the pre- and post-market times, the NXT adds a middle asking price that automatically adjusts to the middle of the most prioritized asking prices for selling and buying, and a stop designated asking price that triggers an order at a certain price.

This allows for a wider range of trading strategies.

Currently, brokerage firms pay a trading fee of 0.0023 percent to the KRX.

The NXT has reduced trading fees by 20 percent to 40 percent, compared to the KRX, by segmenting them.

However, fees paid by customers are set by brokerage companies.