A market where new types of securities, such as fractional real estate investment products, can be traded appears set to open soon. The Korea Exchange plans to implement the rules for operating the new securities market in Oct., and will also accept preliminary listing review applications.
According to the financial investment industry on the 29th, the exchange established the operating rules for the new securities market on the 22nd and is collecting opinions from related companies on the detailed enforcement rules. If there are no major issues with the opinions gathered by Oct. 1, the rules will be implemented within Oct.
Once the rules take effect, a basis will be in place for the listing process of new securities, and preliminary listing review filings will begin immediately. Considering the time required from new listing application to approval, the first product on the new securities market could appear as early as the end of this year.
An exchange official said, "If a preliminary review request for new securities comes in within the year, the new securities market could launch as early as the end of this year, or by the first quarter of 2026 (Jan.–Mar.) at the latest."
New securities refers to "non-monetary trust beneficiary securities," such as fractional real estate investment products, and "investment contract securities," such as performance and intellectual property (IP) revenue-sharing investments. Until now, only over-the-counter transactions were possible on platforms such as Kasa and Musicow. If the market opens and products are listed, they can be bought and sold via brokerage firms' home trading systems (HTS) and mobile trading systems (MTS).
However, unlike regular stocks, which can be traded outside regular hours, new securities can be bought and sold only during the regular session. Initial margin must also be paid 100% in cash, making credit and margin transactions impossible. As new securities are entering the formal system for the first time, this is seen as a measure for market stability and risk management.
According to the operating rules for new securities, listing requirements include: ▲ applicant's equity capital of at least 2 billion won ▲ base market capitalization of at least 3 billion won ▲ a total of at least 100,000 securities or 100,000 units listed ▲ a retail investor ownership ratio of at least 25%.
Some say the listing bar is somewhat high, so entries will center on fractional real estate investment products. When the exchange ran a pilot of the new securities market in the first half of last year, no products met the listing requirements.
However, an exchange official said, "We are in preliminary talks with two fractional investment firms, and once the effective date is set, we will accept applications."