Seoul: The chief of South Korea's financial watchdog stated that a range of measures focused on fairness and transparency in the country's capital market will be consistently implemented to enhance market confidence. Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), highlighted the importance of these initiatives during a conference on capital market advancement.
According to Yonhap News Agency, the FSS plans to computerize the short selling system and launch the country's secondary stock market exchange to bolster investor confidence. Lee emphasized the establishment of a transparent and fair paradigm for the capital market as a primary focus. The country is set to resume short selling next month, following a temporary ban imposed in November 2023 due to uncovered violations of naked short selling by several global investment banks.
Additionally, the introduction of an alternative trading system next month aims to enhance efficiency and convenience in securities trading, signaling a significant overhaul in the country's stock market. Currently, the Korea Exchange (KRX), established in 1956, is the sole national operator of the stock market.
The new secondary stock trading platform, Nextrade (NXT), will operate for 12 hours from 8:00 a.m. to 8:00 p.m., offering longer trading hours than the main bourse managed by the KRX, which is open from 9:00 a.m. to 3:30 p.m. NXT is set to provide lower fees compared to the main bourse and introduce varied stock bid and ask prices.
The FSS chief reiterated the commitment to safeguarding investors as authorities continue to implement these strategic measures.