S. Korea, Taiwan cross-list IT funds

SEOUL, June 11 (Yonhap) -- The South Korean and Taiwanese bourse operators cross-listed exchange-traded funds (ETFs) that track their joint index of IT firms in a move to boost bilateral ties and support tech firms, Seoul's Korea Exchange (KRX) said Monday.

In South Korea, the KODEX Korea Taiwan IT Premier ETF debuted on its main bourse earlier in the day, while in Taiwan, the Cathay Korea/Taiwan ITP ETF was listed on the Taiwan Stock Exchange, according to the KRX.

Both funds are supposed to track the Korea Taiwan ITP index, which is the first cross-border index involving key tech entities in both nations, so as to enable investors to enjoy the advantages of high capital gains from the South Korean market as well as Taiwan's high dividend yield, the KRX said.

"The newly listed ETFs are expected to bring abundant capital to IT blue chips both in South Korea and in Taiwan," KRX chief Jung Ji-won said. He called the case "a cornerstone of the flourishing relationship between the Korean and Taiwan capital markets."

The two sides also vowed to push for fresh projects by inviting more exchanges in the region to jointly compile new indices, the KRX added.

graceoh@yna.co.kr
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