On the 5th, Korea Exchange (KRX) Chairman Jeong Eun-bo said, "Compared with major overseas markets, the KOSPI index already has the capacity to exceed 6,000 points." The exchange held a New Year press conference that day and announced its "core strategies for a great leap forward in the capital market."
At the press conference that day, Jeong said, "If you compare with major overseas markets, I think there should be no major problem for the KOSPI index to surpass 6,000 points," adding, "Once it crosses 7,000 points, our market will gradually be entering a stage of being recognized as a premium market."
At the same time, the exchange laid out 12 tasks centered on four core strategies: ▲ raising the credibility of the capital market ▲ shifting to productive finance ▲ strengthening global competitiveness of the capital market ▲ securing future growth engines.
First, to raise the credibility of the capital market, it said it will make the early exit of insolvent companies the top priority. It said it will continue to tighten delisting criteria such as market capitalization and revenue, and bolster delisting review organizations and personnel to swiftly remove marginal companies.
It also explained that, to root out unfair trading, it will strengthen the joint response framework of the task force and advance the market surveillance system by incorporating artificial intelligence (AI) technology.
To build global competitiveness, it said it will introduce a 24-hour trading system in stages. The exchange plans to open a pre- and after-market with a target of June, and aims to introduce 24-hour trading by the end of next year.
However, regarding criticism that securities firms feel burdened by extending trading hours, Jeong said, "Whether to become a member or not is the choice of the securities firms," adding, "Extending trading hours at the exchange is a universal trend."
On opening the pre-market at 7 a.m., one hour earlier than NEXTRADE (NXT)'s pre-market hours, Jeong explained, "Member securities firms wanted a time slot different from NEXTRADE's."
Jeong added, "We also have to compete with NEXTRADE. But why can we trade for only six and a half hours?" and said, "Competition should take place under equal conditions, and that will also help our investors."
The exchange also said it will push for 24-hour trading in the derivatives market and a shorter stock market settlement cycle, and will pursue efforts for inclusion in the MSCI developed index by moving up the implementation of mandatory English disclosures.
To secure future growth engines, it said it will swiftly introduce single-stock leveraged exchange-traded funds (ETFs). It also said it will push to list new products such as weekly options and emissions futures, and will gradually introduce AI across the exchange's operations.
For a shift to productive finance, it said it will boost venture capital by facilitating tailored listings for advanced technologies such as AI and enhance the expertise and speed of reviews for technology companies.
To raise growth funds in a timely manner, it will quickly support the introduction of business development companies (BDCs), expand KOSDAQ company analyst reports, and strengthen the incubation function for unlisted companies. In addition, it said it will enhance the expertise and independence of KOSDAQ headquarters organizations and personnel and strengthen programs to boost corporate value, including improvements to disclosure guidelines.