Trading of Public Offering Fund Listed Classes Begins on the 27th

Significantly Enhanced Accessibility to Public Offering Funds
with Easy Trading Like Stocks and ETFs

The Korea Financial Investment Association announced that, starting from October 27, trading of public offering fund listed classes will begin on the Korea Exchange’s KOSPI market. The first two products to be listed are "Daishin KOSPI200 Index" and "Eugene Champion Intermediate-Term Credit." Investors will be able to search for these product names and trade them easily and conveniently, just like stocks or ETFs.

The listed class is an innovative financial product designed to simplify the trading process for public offering funds and enhance investment accessibility. In January of last year, financial authorities announced the "promotion of listed trading for general public offering funds." The financial investment industry’s "listed class trading service" was designated as an innovative financial service (financial regulatory sandbox), providing the necessary institutional foundation.

Public offering funds are recognized as a representative means of indirect investment, as they allow for small-scale and diversified investments and are subject to strict public regulation, ensuring strong investor protection. Exchange-traded funds (ETFs) have attracted significant market attention due to the convenience of buying and selling and lower cost burdens.

The listed class is expected to establish itself as an attractive investment product by combining the strengths of public offering funds and ETFs, while also leveraging the scale and stability of traditional public offering funds.

As intuitive and simple investing becomes more popular, the listing of public offering funds or their conversion to ETFs is actively being pursued worldwide. The market share of active listed funds is also increasing. At the end of last month, the U.S. SEC officially announced its intention to allow the creation of ETF classes for existing (unlisted) mutual funds, prompting more than 80 asset management firms to prepare products in a manner similar to listed classes. Fund listing and trading are becoming a global trend in overseas markets as well.

Seo Yooseok, Chairman of the Korea Financial Investment Association, stated, "The listed class is the first case of integrating over-the-counter and on-exchange trading systems, allowing investors to refer to past performance, such as whether the fund has outperformed the index. Investors can buy and sell at low cost and with speed on the securities market whenever they wish."

He added, "The initial listing consists of equity and bond funds that have been validated by the market. The significance lies in the fact that, through the preparation process for this listing, infrastructure such as tax reforms and systems has been completed, establishing a foundation for additional listed classes to be introduced at any time."

He further emphasized, "As fund listing and trading is a global trend, the listed class is expected to greatly contribute to enhancing investment convenience and investor protection, revitalizing the public offering fund market, and strengthening international competitiveness."

The Korea Financial Investment Association plans to work closely with the industry and related organizations to ensure smooth trading of listed classes and investor protection, and will actively support the launch of additional products. Furthermore, in line with the roadmap announced by the financial authorities, the association is actively supporting legislative revisions to institutionalize listed public offering funds.

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