One year anniversary of KONEXUpdated: 2014-07-01 22:52:09 (KST)
This Tuesday marks the one-year anniversary of the foundation of the Korea New Exchange, or KONEX a stock market tailor-made for start-ups.
KONEX was set up to make it easier for small companies to raise funds and reduce their reliance on bank loans to start and run businesses.
More than 55 companies are listed in the KONEX with a total market value of one.two-billion U.S. dollars.
KONEX falls in line with President Park Geun-hye's initiative toward achieving a creative economy, which envisions a convergence of creative ideas and entrepreneurship to create new jobs and markets.
Kim Goon-ho , the president of the KONEX Assocation and F-n-Guide Incorporated, which is listed on the KONEX says his company is building experience and taking an important step toward being listed on the tech-heavy KOSDAQ.
"Listed companies think it's a crucial step, a trial and error period to build a relationship with potential investors before listing on the KOSDAQ. But most of them have not gained financially from listing on the KONEX, not yet at least."
The lack of participation in the KONEX has been pointed out as a deficiency.
The amount of transactions in an average day on the KONEX is less than 198-thousand
dollars, with less than 48-thousand shares traded daily.
To induce more investors, the government has lowered the standards of qualifications.
The Financial Services Commission reduced the required deposit by one-third to 100-million Korean won, or around 99-thousand dollars.
The commission also slashed the minimum number of trading units from 100 shares to one share the same as the KOSDAQ.
Kim Ji-yeon, Arirang News.
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