Invigoration of the KRX

KRX President Lee vows to make the KRX a first-class global market

The Korea Exchange held its New Year's ceremony and the opening of the stock market for 2008 at the stock exchange Jan. 2 with the attendance of key government officials led by Deputy Prime Minister and Finance and Economy Minister Kwon O-kyu, Chairman Hwang Kun-ho of the Korea Securities Dealers Association and heads of securities brokerage firms.
KRX President Lee Young-tak, in his speech, said the KRX will work to become a global stock exchange and a top capital market for northeast Asia this year.
He said after the KRX's initial public offering, it will conclude tie-ups with an expanded number of foreign securities exchanges to strengthen its alliance with those exchanges and to enhance the KRX's competitive strength overseas. The KRX will also focus on cutting costs by improving the operation of the stock market based on the management of a next-generation system to cope with the enforcement of the new Capital Markets Consolidation Act and changes to occur within the securities market.
Lee said the financial industry is at an important crossroads with the new capital markets law, effective from February 2009, which he compared to a 'big bang'in the industry. The CEO added that the KRX must prepare a jump-off point for its advancement into overseas markets and the exchange must focus on the following objectives in its operations this year:
First, the KRX will put in working order the related securities regulations and lead the efforts to adjust to the new law by diversifying its products. The new capital markets law is intended to introduce fair and transparent operation of the securities market, offering a variety of opportunities for investment.
Lee said he will try to strengthen the autonomous function of regulations and advance the public notice system to make the market sound and transparent at the same time. The KRX will push for the listing of securities futures and 10-year government bond futures to satisfy investor demands and develop more products for the market, especially derivatives products, in an effort to continuously meet the needs of the market.
Second, he said the KRX will build a next-generation system for the stable operation of the market and will simultaneously cut costs while boosting its effectiveness.
The KRX will develop a next-generation system and test it before it is installed in January 2009 for the sake of the market's uninterrupted operation. The operation system will be the most effective one, keeping the need for the quick introduction of new products in mind, the KRX president said.
Third, the KRX will also try its best to expand its overseas operations this year to become a global securities exchange through various overseas businesses. The stock exchange will attract many foreign firms to list their stocks on the Korea Exchange and diversify the countries to make the KRX a truly global securities exchange. The KRX will make the KOSPI 200 a first-rate derivatives product through the Chicago Mercantile Exchange and the Eurex.
Lee also said that the KRX will take on projects to help developing countries set up and operate their own stock markets to create a new income source. After the IPO of the KRX, it will expand tie-ups with foreign securities exchanges in a bid to strengthen KRX's international competitive edge.
Fourth, the KRX president said he will try to make the KRX trusted by its customers through the improved, fair and transparent operation of the stock exchange so that it will lead to the very invigoration of the market.
The KRX will always listen to investors, listed companies and members to make improvements of the market in a rational manner in order to make transactions convenient and further invigorate the market.
The KRX will continue to push IPOs and make management reforms so that it will be able to compete with first-rate global securities exchanges.
"The Korea Exchange will continue to improve its operations as noted above to become a renowned global securities exchange and help make the market one of the top capital markets in northeast Asia,"Lee said. nw

(left photo) KRX President Lee Young-tak. Dignitaries, including DPM-Minister of Finance and Economy Kwon O-kyu, and KRX President Lee and KSDA Chairman Hwang Kun-ho, push the button in a ceremony to launch trading in 2008.