This article was published on Aug. 21, 2025, at 4:03 p.m. on the ChosunBiz MoneyMove website.
The Korea Exchange (KRX) is expected to formally open a new securities market by accepting listing applications for fractional investment products around late September to early October. This means that the fractional investment products, which had been issued and distributed under the financial regulatory sandbox (innovative financial services), will now open pathways for investment within the institutional framework.
This means that transactions can be conducted through the home trading system (HTS) and the mobile trading system (MTS), significantly improving convenience for investors.
According to investment banking (IB) industry sources on the 21st, the Korea Exchange announced on the 11th the impending enactment of the 'KRX New Securities Market Operating Regulations' and received relevant opinions until the 18th, with no separate objections raised. Accordingly, the Korea Exchange plans to enact the regulations following a market audit committee resolution in September and will accept applications for the listing of fractional investment products. Thus, the market opening is expected to take place around late September to early October.
An industry source familiar with the matter said, "I understand that the Korea Exchange is continuously discussing with multiple operators aiming to enter the new securities market," adding, "The draft indicates that fractional investment companies can submit listing pre-examination applications even before the regulations take effect, which means that the Korea Exchange is moving quickly to facilitate the market opening."
New securities include non-monetary trust revenue securities such as fractional real estate investment products and investment contract securities related to performance and intellectual property (IP) revenue sharing. Until now, general investors could only engage in over-the-counter transactions through corporate platforms like Casa and Musicow. The Korea Exchange has already received designation as 'innovative financial services' for the 'new securities on-site market pilot opening' from the Financial Services Commission and has completed the necessary system construction for transactions. The market was piloted in the first half of last year, but actual listings did not occur due to circumstances such as a lack of products meeting listing requirements.
However, the situation has changed rapidly this year. The Financial Services Commission established a new license for 'revenue securities investment brokerage' in February, bringing the issuance and distribution of fractional investment products, which had only been possible within the innovative financial services framework, into the institutional domain. Additionally, starting at the end of September, those who obtain the license will be able to issue revenue securities through public or private methods and carry out subscriptions. The Korea Exchange has also prepared regulations to list and trade related products in the on-site market accordingly.
According to the regulations, listing applicants must meet the following requirements: ▲ domestic corporations that are stock companies under commercial law ▲ equity capital of 2 billion won or more ▲ market capitalization of 3 billion won or more ▲ total listed securities of 100,000 securities or 100,000 shares or more ▲ a shareholding ratio of small investors of 25% or more. Similar to existing listings on the Korea Exchange, they will undergo pre-consultation, preliminary review, and main review before being listed.
However, some analysts suggest that it may take time to activate the plans of the Korea Exchange, which differs from its goals. Meeting the listing requirements is not easy, and the prolonged delays in legislation have led to a somewhat stagnant market.
A representative from the Korea Exchange said, "We have put significant thought into ensuring that large-scale items can receive proper price evaluations through transactions in the on-site market, rather than just small products that can be sufficiently traded on over-the-counter platforms." Regarding concerns that the listing requirements may be too high, they remarked, "We have set them as a minimum," adding, "While we cannot determine the likelihood of listings at this moment, all companies currently in pre-consultation have met the listing requirements."