"KOSDAQ Spin-Off Is Institutionalizing a Gambling Arena"...Union Lines Korea Exchange Lobby with Funeral Wreaths

As plans have been pushed forward, led by the Democratic Party of Korea, to convert the Korea Exchange into a holding company and spin off the KOSDAQ market into a separate corporation, the exchange's labor union is strongly opposing the move.

On the 10th, about ten condolence wreaths were placed on the first floor of the Korea Exchange in Yeouido, Seoul. Photo by Im Chunhan

On the 10th, about ten funeral wreaths bearing phrases such as "Stop turning it into a subordinate financial holding company under government control!" and "Five parachute executive positions created by converting to a holding company" were set up on the first floor of the Korea Exchange in Yeouido, Seoul. On both sides of the lobby, extra-large funeral banners covered the walls.

The Korea Exchange branch of the National Financial Industry Labor Union criticized the plan, saying, "Separating KOSDAQ will bring about a revival of the dot-com bubble, which led to excessive listings and speculation," and added, "This is not about investor protection but about institutionalizing a gambling arena, and if KOSDAQ is converted into a subsidiary that is obviously in the red, it will ultimately create a situation where it has no choice but to survive through 'blind listings'."

The union argued, "If the KOSDAQ market is operated separately, the market surveillance function will inevitably be weakened or related costs will inevitably increase, and it will also run counter to the global trend of integrating markets."

The union pointed out, "The Korea Exchange, as a joint-stock company, is not a playground for government-controlled finance," adding, "Converting the exchange into a holding company that has neither competitiveness nor efficiency will only result in creating five parachute CEO positions."

Previously, Democratic Party lawmaker Kim Taenyeon sponsored a bill to separate the KOSPI market from the main securities market. At a National Assembly interpellation session the previous day, Prime Minister Kim Minseok said, "KOSDAQ, like KOSPI, needs changes and institutional improvements," and added, "Including Assemblyman Kim's proposal on the separation of KOSDAQ, it would be desirable to make a comprehensive judgment, prepare countermeasures, and implement changes through legislation."

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