KRX promises reforms to bring market to global standards

The Korea Exchange (KRX) is seeking to build a strong initiative and upgraded services to shoot for the revaluation of the country's stock market, its chief said Tuesday.

KRX Chairman Sohn Byung-doo said the market will bring its operations to the level of advanced economies.

In 2021, Korean stock markets celebrated record performances despite the pandemic.

The local IPO market expanded by 3.5 times, with the total market capital increasing 12 percent, according to KRX data.

"The public interest for the capital market has become larger than ever, and market trust is essential for fostering a competitive environment. As the key operator of the stock market, we stand on a turning point for a larger leap," Sohn said.

This year, the market is aiming to join the Morgan Stanley Capital International (MSCI) index, the world's benchmark index for global investment funds.

Korea was first put on a watchlist for potential candidates but has failed to become a MSCI member. The MSCI membership will be a strong stepping stone for the local stock market's revaluation as a world-class market, Sohn said.

The government is discussing some of the MSCI requirements, such as the deregulation of currency exchanges and the identification of foreign investors, he said.

The KRX is also focusing on starting a "global segment of Kosdaq-listed firms," a new league of promising Kosdaq companies, through which it wishes to attract foreign investors.

Regarding the cryptocurrency market, he said the KRX will look into its potential role once the government comes up with the related regulation system.

Yonhap