11-02-2025
KRX CEO labels corporate reform drive a 'success'
The South Korean government's push to boost the market value of listed companies here has been 'successful' when considered apart from external factors, according to the chief of the country's stock market operator.
"Leaving out the variable of international competition, the initiative has been significantly successful in terms of resolving the (Korea) discount," Korea Exchange CEO Jeong Eun-bo said in a press conference at the bourse operator's headquarters in Yeouido, western Seoul, on Tuesday.
Last year, the government rolled out a corporate value-up program that encourages listed companies to boost their corporate value and enhance shareholder returns. The initiative aimed to resolve the "Korea discount," which refers to the tendency of companies listed here to have lower market valuations than their global peers.
'The rise in the price of banking shares -- a sector not heavily affected by international competition -- may be an outcome of the value-up program,' Jeong said.
'But for sectors influenced by international competition, it is difficult to assess whether their share price fluctuations are due to the (value-up) initiative or changes in the global environment.'
Yet, acknowledging that local investors are continuing to expand their holdings in other investment vehicles such as the US stock market and virtual assets, Jeong vowed to push for additional measures such as tax incentives to encourage companies to strengthen their corporate reform efforts.
From June, trading for around 10 derivatives will be extended to overnight hours, from 6 p.m. to 6 a.m. The measure was drawn up to help foreign investors hedge after-hour risks.
The bourse operator also plans to open new offices in New York and London this year, strengthening its global presence.
Meanwhile, the Korea Exchange will soon have a local rival for the first time in nearly 70 years, as the alternative trading system Nextrade is set to make its debut on March 4.
'With the introduction of a new player, the Korea Exchange will face a decline in profitability. The years of relying on transactional commissions has ended. The Korea Exchange has to diversify its revenue sources,' Jeong said.
