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Regulator to ease listing rules to boost KOSDAQ market

All News 15:08 January 09, 2018

SEOUL, Jan. 9 (Yonhap) -- South Korea's financial regulator said Tuesday it will relax some listing rules on the junior KOSDAQ market, in a bid to help smaller firms raise funds through the stock market.

Choi Jong-ku, chairman of the Financial Services Commission (FSC), also said the government will set up a 300 billion won (US$280 million) fund to invest into KOSDAQ-listed firms, which have a relatively low value of stocks.

Currently, the KOSDAQ market requires a company to meet guidelines in three areas -- profits, market capitalization and paid-in capital -- when the company applies to be listed on the market.

The new rules will allow a company to list on the market if it meets guidelines in one area, Choi said.

Regulator to ease listing rules to boost KOSDAQ market - 1

The FSC will formally announce the new rules on Thursday, Choi said.

For months, financial authorities have considered giving tax breaks and easing listing rules to boost the KOSDAQ market to help promising new companies raise funds.

Institutional investors have shunned the market because of low appetite for the listed stocks and the opaque accounting of some firms.

It has also been struggling with a string of accounting scandals and a defection of large-cap stocks to the KOSPI market.

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