Son Byung-du, Chairman, "We will make Korean unicorns go public domestically"

Lowering Excessive Barriers and Focusing on Growth Potential... Announcement of Listing System Improvements

Byungdoo, Chairman of the Korea Exchange, is announcing the key directions for promoting innovative growth in the capital market at a press conference held on the 31st at the conference hall of the Seoul headquarters main building. (Provided by Korea Exchange) [Image source: Yonhap News]

[Asia Economy Reporter Minwoo Lee] Sohn Byung-doo, Chairman of the Korea Exchange (KRX), recently announced plans to improve the listing system to attract unicorns (unlisted startups valued at over 1 trillion won) that have been turning their attention to overseas listings back to the domestic market. The plan includes easing various requirements and establishing a listing system that reflects the characteristics of next-generation growth companies.

On the 31st, Chairman Sohn held a press conference at the Korea Exchange Seoul office in Yeouido, Yeongdeungpo-gu, Seoul, under the theme of "A strong capital market supporting South Korea's innovation growth." Given that unicorns such as Coupang, which listed on the U.S. stock market on the 11th, as well as Market Kurly and Yanolja, are shifting their listing routes to the U.S. stock market, the plan aims to create incentives to attract these innovative companies to the domestic stock market.

Earlier, the Exchange had already introduced a new KOSPI market capitalization sole requirement (1 trillion won) starting from the 9th and eased the market capitalization and equity capital requirements from 600 billion won and 200 billion won to 500 billion won and 150 billion won, respectively. In addition, the listing system will be improved to reflect the characteristics of next-generation growth companies such as unicorns and BBIG (Bio, Battery, Internet, Game), and the screening process will be enhanced by involving technology evaluation experts in qualitative reviews. Furthermore, the Exchange announced plans to expand research support projects for small and medium-sized enterprises to produce and distribute high-quality investment analysis information free of charge for companies that have been excluded from corporate analysis targets.

Plans for ESG (Environmental, Social, Governance) sector initiatives were also revealed. First, the Exchange intends to continuously develop and supply ESG-themed Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs). Alongside this, three climate change indices?the KRX300 Climate Change Index, KOSPI200 Climate Change Index, and Climate Change Leaders Index?will be launched, and efforts will be made to fast-track listings of ESG investment products and build a comprehensive ESG information portal.

Other plans include ▲ upgrading the Exchange’s IT infrastructure to world-class standards ▲ jointly developing indices and cross-listing ETF products with China ▲ expanding new overseas-themed ETF and ETN products. Chairman Sohn pledged, "We will listen carefully to voices from the field and work closely with the government to reflect them in systems and policies," adding, "We will carry out projects systematically and achieve results with a sense of urgency."

This content was produced with the assistance of AI translation services.