Financial Services Commission Chairman Shin Je-yoon

A great number of large financial firms will be listed on the Free Board (FB) Market, an over-the-counter-market within the system, including Mirae Asset Life Insurance, KDB Capital, Samsung SDS, and other well-known firms not yet listed on the Korea Exchange.

The Free Board Market will be divided into a first section for large companies and a second section for small firms, the Financial Services Commission (FSC) said on Jan. 14.

The FSC announced its plan to reform the FB Market with Director Suh Tae-jong of the Capital Market Division of the FSC saying that the need for the reform of the market has become greater as its significance has diminished with the launching of the Konex Market last year at the Korea Exchange.

The reform was made so that the FB Market will be operated in full as part of the stock market and more firms will be invited to list their shares in the days ahead to vitalize it by increasing the number of listed firms and transactions, Suh said.

The FB market was launched in 2005 to enable SMEs to secure funds, and at the moment 53 firms are listed on the FB market with few deals ongoing.

The Korea Financial Investment Association will have 90 firms that are obliged to report their operating reports to be listed on the FB Market, bringing the number of listed firms to 143this year. Any firms with more than 500 shareholders that offer their shares publicly will also be required to join the FB market, FSC said.

At present, 450 non-listed companies should report their operating statements out of which 90 firms with no limits for the transfer of their shares and with more than 500 million won in annual sales have been selected to join the FB market since they meet the new requirements for FB market listing.

Such companies as Mirae Asset Life, Samsung SDS, KDB Capital, Jeju Air, IBK Investment and Securities, Pentact, and other similar companies may be listed. Under the reform plan drawn up by the FSC, 53 firms on the current list of the FB market will be up for reexamination of their qualifications based on their 2013 performance reports.

The 90 firms to be listed this year will make up the first section of the FB market and other non-listed firms will be admitted to the second section of the FB market where 1,478 firms will trade their shares. The FSC will open the FB market from July following consultations with KFIA.