Korea Exchange seeks to boost foreign interest in KOSDAQ firms

By Kim Young-gyo
HONG KONG, Oct. 7 (Yonhap) -- South Korea's bourse operator Korea Exchange (KRX) showed its commitment Friday to attracting foreign investors to firms traded on the country's secondary stock market.
The KRX held a joint investment relations (IR) session in Hong Kong for 12 South Korean companies traded on the tech-heavy KOSDAQ, which was established in 1996.
"This conference aims to raise interest and understanding of the KOSDAQ market and its listed companies with foreign investors," said Jin Soo-hyung, president of the KOSDAQ Market Division at the KRX.
Despite many good companies with potential being listed on the KOSDAQ market and deserving interest from foreign investors, participation of foreign investors in the KOSDAQ market is low, Jin said.
"One of the reasons is that foreign investors are not familiar with the KOSDAQ market and its listed companies," he said.
The KRX plans to regularly organize IR events abroad for KOSDAQ firms, with a view to raising foreign investors' confidence in the market and its listed companies, Jin said.
As of the end of 2010, KOSDAQ was the world's No. 2 growth market in terms of trading value.
Industries on the KOSDAQ market include companies working in information technology, the Internet, culture, bio-technology, education and renewable energy, officials for the exchange said.
In a move to promote the market, the bourse operator has introduced a KOSDAQ premier index, which consists of the 100 outstanding companies on the market, and developed an exchange-traded fund based on that index.
The KOSDAQ has also adopted a qualitative examination to de-list companies that do not meet its standards, thus protecting investors.
KOSDAQ companies participating in the IR included Celltrion Co., POSCO ICT Co., Modoo Tour Co. and Techno Semichem Co.
The KRX said Hong Kong-based institutional investors and fund managers had been invited to the IR session and one-on-one meetings were also scheduled between the listed firms and investors.
The KRX initiative comes amid concerns that the global economy may be heading for another recession.
According to South Korea's Financial Supervisory Service (FSS), foreigners offloaded South Korean stocks and bonds worth around 1.3 trillion won (US$1.1 billion) in September as they fled for safe-haven assets.
ygkim@yna.co.kr
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