South Korea Exchange
The South Korea Exchange (KRX) is the main stock exchange of South Korea. KRX was formerly known as the Korea Stock Exchange, and it is owned by the Korea Exchange Corporation which is a state-owned enterprise. The intention of the KRX is to foster the financial markets of South Korea while providing a safe and secure trading environment of financial instruments such as stocks, derivatives, bonds, foreign exchange and others.
The majority of the Korean stock exchange’s listing comprises large Korean firms, with the majority of the top thirty listed companies included in the KOSPI (Korea Composite Stock Price Index). The majority of the remaining listings are secondary board companies or firms listed on the KOSDAQ (Korean Securities Automated Quotation System).
Although the gaming of stocks is illegal in South Korea, the exchange has experienced several periods of market manipulation. The most prominent example of this occurred in the late 1990s when several high profile investors, who are now referred to as the “Korea Tigers”, ran up stock prices with aggressive buying and selling. This caused a boom in the South Korean stock market that was ultimately followed by a crash in 2000.
Despite this, the KRX has proven to be successful with numerous large, international firms listing their companies. Samsung, Hyundai, LG, Kia and many others are all traded on the KRX. The service is regulated by the Financial Services Commission and the Korean government, which oversees all exchanging activities covered by the exchange. All members are subject to strict regulations that ensure protection of investors.
The exchange runs trading sessions Monday through Friday and is one of the busiest bourses in Asia. Its main trading floor is located in Seoul while there are also several branches located throughout South Korea. The KRX has an extensive set of trading rules and regulations which are available to the public through its legal division and website.
In recent years, the KRX has adopted technology to improve its services, including automation for international traders, high-speed order processing, and automated trading. This has attracted international investors and enabled the exchange to become one of the best-performing exchanges in Asia.
The KRX is also deeply involved in international exchanges with various countries. It is a member of the World Federation of Exchanges, the Pacific Exchange and Markets Group and the Asia Pacific Exchange Confederation. As part of its membership to these organizations, the KRX has fostered a number of ties with other exchanges around the world. This has enabled investors to access liquidity and safe investments.
The South Korea Exchange has developed into a reliable, comprehensive and efficient financial market that enhances the economy of South Korea. By providing a secure and transparent trading environment as well as access to an international network, it has established itself as one of the premier Asian exchanges.
