Busan is good

3 Exchanges to Be Merged in August

Contents

By Cho Hyung-kwon
Staff Reporter

The nation’s three exchanges for securities and futures trading - the Korea Stock Exchange (KSE), the Kosdaq Stock Market and the Korea Futures Exchange (KOFEX) - and the Korea Securities Dealers Association (KSDA) are expected to be merged on August 31 and the new combined entity will be named the Korea Exchange.

The combined exchange is expected to be officially launched in early October with the head office located in the southern port city of Busan.

The four securities and futures related institutions signed an official merger contract in Busan on Thursday as part of their efforts to establish a single trading floor for equity and derivatives trading.

The government announced its initial merger plans in May last year and introduced the exchanges consolidation bill in the National Assembly in November.

Since then, the four entities have worked closely to establish the Korea Exchange in the second half of the year despite facing sporadic opposition from unions and other smaller securities related institutions.

Members and shareholders of the four institutions will each hold a general meeting on July 26 to approve the merger contract and if it is passed, they will be merged on August 31.

After approval from the Minister of Finance and Economy, the Korea Exchange will be officially launched.

The consolidated exchange will have 100 billion won in capital and will issue 80 million shares _ 20 million each by the four entities _ at 5,000 won per share. The KSE will hold 82.6 percent, the Kosdaq Stock Market 12.52 percent, the KOFEX 4.16 percent and the KSDA 0.72 percent.

The source of news : The Korea Times
kevincho@koreatimes.co.kr
07-15-2004 19:00