Seoul: The chief of South Korea's financial watchdog announced that a series 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), emphasized the importance of these measures during a conference on capital market advancement.
According to Yonhap News Agency, Lee highlighted the computerization of a short selling system and the planned launch of the country's secondary stock market exchange as key components to boost investor confidence. The country is set to resume short selling next month after a temporary ban was imposed in November 2023 due to violations involving several global investment banks.
In addition, an alternative trading system is scheduled to launch next month, aiming to improve efficiency and convenience in securities trading. This development marks a significant change in the country's stock market, which is currently operated solely by the Korea Exchange (KRX), established in 1956.
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 compared to the main bourse's schedule. The NXT will also provide lower fees and introduce varied stock bid and ask prices, enhancing the trading experience for investors.
The FSS chief reaffirmed the commitment of authorities to continue efforts to protect investors, underscoring the ongoing dedication to fostering a transparent and fair capital market environment in South Korea.