KRX to Get Promotion
The Financial Services Commission announced on July 2 that the Korea Exchange (KRX) would be turned into a holding company so that its global competitiveness can be enhanced.
Under the circumstances, KOSCOM’s concerns are on the rise, as the KRX is predicted to absorb its IT planning and management functions through structural reorganization as part of the adoption of a holding company structure. At present, the KRX is the largest shareholder of KOSCOM, owning 76.62 percent of its shares.
The KRX is planning to talk the matter over with KOSCOM before making any final decision. Still, the former is thinking a holding company in control of IT planning and management will guarantee a higher level of efficiency in KOSPI and KOSDAQ system establishment and improvement, overseas business, and other areas.
“It is expected that KOSCOM will be incorporated into the new holding company in the long term, as one of the goals of the restructuring plan is to minimize the duplication of costs and human resources between the holding company and its subsidiaries,” said Shin Jae-ryong, the KRX managing director in charge of IT management and strategy. He continued with, “Although the size of the holding company has yet to be determined, we will discuss details concerning IT with the top management of KOSCOM.”