Promotion of Collection Market
The Korea Financial Investment Association (KOFIA) announced on July 12 that it has signed a memorandum of understanding (MOU) with the Korea Growth Investment Corporation (K-Growth) to active the collection market through the K-OTC PRO, a local unlisted stock market targeting professional investors.
Under the agreement, the KOFIA will give the K-Growth’s baby fund management companies the privilege of exemption from membership fees and the K-Growth will provide incentives so that secondary funds invested by the K-Growth can actively make use of transaction through the K-OTC PRO.
The K-Growth has expanded its role to create the business growth ecosystem by investing baby funds. It has been steadily making an effort to promote the collection market by raising the funds specialized in collection market, especially secondary funds which are specialized for both the structure of investment companies and transaction of fund contributed shares, or LP portion, since its foundation.
The K-OTC PRO, which is newly created by the KOFIA, will trade unlisted stocks with high growth potentials, which are invested by 70 baby funds of the K-Growth, and contributed shares of private funds in earnest. Accordingly, it will be the market that can invigorate the secondary market.