New Start for Seoul Bourse
The Korea Exchange (KRX) was released from the public institution list on Jan. 29, so it is now free from direct government control, including budget compilations and audits from the Board of Audit and Inspection of Korea. With its first taste of freedom, the KRX is planning to generate 300 billion won (US$274.35 million) annually in sales through the export of IT infrastructure.
Until now, it couldn’t enthusiastically push forward medium or long-term overseas business, which cannot avoid losses in the short term even when large-scale human resources and expenses are invested.
The KRX exported the EXTURE+, a new trading platform developed in-house, to Azerbaijan for the first time at the end of last year. It also successfully entered into a contract with the Securities and Exchange Commission (SEC) of Thailand to export a cutting-edge market surveillance system this month.
Korea Exchange Chairman Choi Kyung-soo recently said in a meeting, “Based on Azerbaijan, Thailand, and Vietnam, where we will start new business this year, we will actively expand our overseas business.” The KRX was selected as the executing organization of the Capital Market IT Infrastructure Development Project initiated by the Azerbaijan State Securities Committee in December last year. It will provide trading and market surveillance, public announcements, distribution of information, liquidation, and payment systems.
Azerbaijan, one of the major oil-producing countries, is regarded as a bridgehead to enter Eastern Europe. Previously, the KRX won contracts to establish IT infrastructure in Cambodia, Laos, Vietnam, and Uzbekistan.
This year, it is planning to expand its IT business horizon to Eastern Europe and the Middle East. In order to do that, the KRX will develop IT solution packages for export consumption and globally compatible specifications. Also, it is planning to jointly establish stock markets with Cambodia and Laos.
Currently, the KRX is operating the joint bourses in Laos and Cambodia. It established the Laos bourse, the Laos Securities Exchange (LSX), jointly with the central bank of Laos. The KRX has a 49 percent stake in the LSX. The Cambodian bourse, the Cambodia Securities Exchange (CSX), was also set up jointly by the country's finance ministry and the KRX. It has a 45 percent stake in the CSX.
Meanwhile, the KRX decided to expand its marketing to visit relevant countries, targeting specialized business fields in each country in order for them to go public in the stock market.