Chairman Choi Kyung-soo of the Korea Exchange vowed he will lead the efforts for the KRX to be a key player in Asia's financial market based on its experience and know-how gained over the past 60 years.
He made the remarks during a ceremony on March 4 in Seoul marking the 60th anniversary of its foundating.
On March 3, 1956, Korea launched the Daehan Stock Exchange, the predecessor of the KRX, with a total of 12 companies listed on the main bourse including four banks.
On the strength of the economic development that Korea achieved in the 1970s and '80s, the stock market achieved phenomenal growth and had 770 companies listed on the main KOSPI bourse and 1,157 firms on the secondary KOSDAQ market as of the end of 2015, with the daily average turnover reaching $50 billion.
"The stock market has served as a key venue for managing assets for many people, and has been expanding its operations by attracting foreign firms to list their shares on the stock market," the KRX chairman said. "Now is the time to go a notch higher by strengthening our global competitiveness. In the next 60 years, the KRX should be a leading bourse in Asia beyond the current role of supporting local economic growth," the CEO said.
Pointing to the limited growth potential under the current conglomerate-focused structure, he also vowed efforts to help cultivate start-ups as future growth engines.
As part of its structural reform, the KRX has been pushing to establish a holding company to oversee exchanges as well as the derivative market, while pushing for relevant bills pending in parliament.
The KRX is owned by about 40 local brokerage houses and futures firms, with each of their holdings not exceeding the 5 percent limit set under current laws. It was delisted as a public company in January.
"It is not a choice but a must for us to adopt the holding firm structure and go public, which will allow us to diversify the business portfolio," Choi said.
Launched in 1955 with just 12 listed companies, the Korea Exchange now lists over 1,927 companies with a market cap of more than $1.23 trillion.
“Korea’s stock market has been developed as a venue of asset management, averaging 60 trillion won ($48.9 billion) in daily trading value,” KRX chairman said.
The country’s rapid economic growth brought a drastic transformation to the bourse operator.
“Korea’s advanced investment environment, in which stock and derivatives markets created a balanced development, has become a benchmarking object for emerging markets,” Choi said.
Foreign investors’ stock ownership surged to 31.9 percent last year, up from 4.9 percent in 1992. The figure has been steadily decreasing after hitting a record high of 42 percent in 2004.
Now it seeks to go beyond its traditional role of managing and operating equity markets by diversifying its business portfolio with new services and products to compete with global peers.
At the beginning of the year, the Korea Exchange announced its plan to set up its holding firm and go public. But the plan has been delayed and a bill to revise the Capital Market Act is pending at the National Assembly.
If realized, the holding company is expected to oversee three subsidiaries in charge of the main stock exchange, the secondary bourse for small and mid-sized firms, and a derivative market for futures and options.
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