Chairman Sohn Byung-doo of Korea Exchange (KRX) came up with core strategies to advance the Korean financial market, which KRX will implement this year, during a meeting with reporters on Jan. 31.
KRX Chairman Sohn said, “As a crisis has become a daily routine, old thoughts and solutions will not work, so we have to nurture fundamentals and power to overcome crises in a long-term perspective, rather than taking short-term emergency measures.”
The meeting served as an opportunity for KRX to suggest four missions: a premium market, a dynamic market, a reliable market and an efficient market and 12 priority tasks to accomplish the four missions.
In order to create a trade environment corresponding to global standards, he said KRX will take steps like changing inapparent dividend payment practice to one of determining dividend record days after dividends are fixed.
English electronic filings will be mandatory for companies with more than 10 trillion won in assets from 2024 to improve foreign investors’ access to the domestic market.
Kospi-listed companies with more than 2 trillion won will be required to do so from 2026. KRX plans to advance the opening time of the derivatives market.
KRX will lead efforts to spread the ESG management ecosystem by materializing public notice guidelines of sustainability management reports in accordance with global trends and building its own “KRX ESG management regime.”
The exchange plans to expand international organizations’ certifying of domestic regulations and infrastructure to raise the global standing of the Korean market and ramp up the international competitiveness of IT infrastructure through the next-generation system “EXTURE 3.0,” which was inaugurated last week.
KRX will secure an upper hand in competition over the financial market by strengthening the competitiveness of the trading system and infrastructure services to brace for the race of alternative trading systems and opening a digital securities market so that digital assets can be listed and traded.
The exchange plans to nurture and support the “Kosdaq global segment” to incubate future growth engines and inaugurate the “standard technology evaluation model.” It will also build a one-stop online support platform to support SMEs’ accounting matters.
KRX plans to expand liquidity supply to individual investors, who have served as a buttress of the financial market during the COVID-19 pandemic period, open the derivatives market’s own night market and introduce a protection system tailored to meet investors’ needs.
KRX will thoroughly eliminate malpractices by shortening the period of uncovering those suspected of naked short selling, coping with social issues and establishing a process of limiting unfair trading players’ participation in the market.
The exchange, which has completed the first phase smart work project by introducing “K-Paperless” and “K-Works,” is about to launch the second phase project.
In the upcoming project, KRX will implement a bottom-up method of work innovation, based on a conception of utilizing, not stockpiling data.
KRX Receives Certification on RMO from MAS
Korea Exchange (KRX) obtained a certification on a “Recognized Market Operator” (RMO) from the Monetary Authority of Singapore (MAS) on Jan. 26.
MAS authorizes exchanges by dividing them into categories such as “Approved Exchange” (AE) and "RMO" depending on each exchange’s impact on the city-state’s market.
The RMO certification will allow KRX to use the name “exchange” and do business with local investors in Singapore.
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