The Korea Financial Investment Association said on the 23rd that trading in public fund listing classes will begin on the Korea Exchange (KRX) KOSPI market on the 27th. The two products, "Daishin KOSPI200 Index" and "Eugene Champion Mid- to Short-term Credit," can be bought and sold easily like stocks or exchange-traded funds (ETF).
There are 27 securities firms where listing-class transactions are available. Starting on the first day, the 27th, trading will be possible at Kyobo Securities, DAOL Investment & Securities, Daishin Securities Co., DB Securities, DS Investment & Securities, Meritz Securities, Mirae Asset Securities, BOOKOOK Securities, BNK Investment & Securities, Samsung Securities, Sangsangin Investment & Securities, Shinyoung Securities, Shinhan Investment & Securities, IBK Securities, iM Securities, SK Securities, NH Investment & Securities, LS Securities, Woori Investment & Securities, Yuanta Securities Korea, EUGENE INVESTMENT & SECURITIES, KB Securities, Hana Securities, Hanyang Securities, Korea Investment & Securities, and Hyundai Motor Securities. At Kiwoom Securities, trading will be available starting Nov. 7.
Public funds allow small, diversified investments and are subject to strict public regulation, which strongly protects investors, but their assets have shrunk because redemptions and other processes are inconvenient. In response, listing classes were created to make buying and selling as convenient as ETFs and to lower the expense burden.
Seo Yu-seok, president of the Korea Financial Investment Association, said, "The public fund listing class is the first case of integrating over-the-counter and on-exchange transaction systems, so investors can now refer in advance to past management performance, such as whether results surpass the index, and can buy and sell cheaply and quickly in the securities market at their desired time," and added, "Since fund listing transactions are a global trend, listing classes are expected to greatly contribute to increasing investment convenience, strengthening investor protection, revitalizing the public fund market, and enhancing international competitiveness."