The Korea Financial Investment Association announced on May 23 that the Professional Over-The-Counter (Pro-OTC) market for institutional and professional investors opens on June 8 before the trading of unlisted shares and fund holdings in the market scheduled to be initiated in July.
The association is currently running the Korea Over-The-Counter (K-OTC) market, another unlisted share trading platform. 99% of the investors in the K-OTC market are individuals. In contrast, the Pro-OTC market is for venture capitals, private equity funds, banks, insurers, angel investors and the like. The establishment of the Pro-OTC market has to do with the fact that similar platforms in the United States, European countries, Hong Kong and Singapore have grown to become financing channels comparable to the general stock markets of the respective countries.
The Pro-OTC market is roughly divided into the trading of unlisted shares by the professional investors and on-demand services regarding unlisted companies. Trading and demand information provided by the association is to be shared by the participants and transactions are to be made through mutual consultations, bidding, auctions, etc.
There, unlisted companies can inform the investors of their financing goals and methods and have talks for financing with those willing to invest. In addition, the companies can make requests for services such as the mass circulation of shares owned by their executives and staff and financial and business consulting.
The association is planning not to receive membership fees and charges for a certain period of time from the opening so that a large number of potential participants can be interested in the market. It is also planning to provide basic information and valuation data on the companies in the market free of charge for one year, too.