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Photo credit: Korea Exchange |
[Alpha Biz= Kim Jisun] The Democratic Party of Korea is reviewing a restructuring plan for the Korea Exchange (KRX), aiming to convert it into a holding company and spin off individual subsidiaries for the KOSPI, KOSDAQ, and KONEX markets. Lawmakers emphasize that even if the exchange system is restructured, the subsidiaries’ headquarters should remain in Busan to strengthen the city’s status as a financial hub.
According to Rep. Kim Tae-nyeon’s office, a bill to amend the Capital Markets Act is expected to be submitted as early as the 18th. The proposed law would establish a Korea Exchange holding company, under which the KOSPI, KOSDAQ, KONEX, and other markets would operate as subsidiaries. If passed, the holding company could also create subsidiaries for derivatives and clearing operations.
The reform’s main goal is to revitalize the KOSDAQ market. Currently, KRX policies focus primarily on the KOSPI, which has diminished the distinctiveness of KOSDAQ-listed companies and weakened the market’s competitiveness. By establishing the KOSDAQ as a separate subsidiary, lawmakers expect tailored listing rules, trading systems, and index development that better suit technology-focused growth companies.
However, concerns remain that the reform could reduce Busan’s prominence as a financial center. Presently, KRX has seven divisions: four divisions—including headquarters, management support, clearing & settlement, and future business—are based in Busan, while the remaining three—stock markets, KOSDAQ, and market surveillance—are in Seoul. Under the holding company structure, it is likely that the market operation subsidiaries would keep their headquarters in Seoul.
Financial authorities noted that “there are currently no plans to convert KRX into a holding company.” Experts stress that the proposed bill should explicitly require subsidiaries to maintain their headquarters in Busan to preserve the symbolic status of Busan as KRX’s base, in line with Article 15, Paragraph 4 of the current Capital Markets Act, which mandates the exchange’s headquarters be in Busan.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
