The Financial Services Commission said on the 31st that, after receiving preliminary approval applications for an over-the-counter exchange (distribution platform) for fractional investment, three companies submitted applications. ▲KDX ▲Lucent Block ▲NXT Consortium.
KDX includes Kiwoom Securities, Kyobo Life Insurance, Kakao Pay Securities, Heungkuk Securities, and Korea Exchange (KRX). Lucent Block's main shareholders include Korea South Pole Venture Investment Fund No. 3 and Hana Beyond Finance. The NXT Consortium brings together the alternative exchange NEXTRADE (NXT), Shinhan Investment Securities, Musicow, INF Consulting, Hana Securities, Hanyang Securities, and EUGENE INVESTMENT & SECURITIES.
After reviews by the Financial Supervisory Service and an external evaluation committee, up to two companies are expected to receive preliminary approval from the Financial Services Commission within the year. After receiving preliminary approval, applicants can meet the human and physical requirements and then apply for final authorization; once approved by the Financial Services Commission, they can begin operations.
Fractional investment is a securities product that securitizes assets such as real estate or music copyrights and sells them in shares to numerous investors. On distribution platforms approved by the financial authorities, investors can trade fractional investment securities like regular stock transactions.