SEOUL: An over-the-counter stock market for promising startups will open in South Korea in November to help them raise funds more easily and offer investors a chance to buy their shares, the bourse operator said Tuesday.
The Korea Exchange (KRX) said the stock market, named the KRX Startup Market (KSM) and slated to open on Nov. 14, will be focused more on technology-intensive startups than other OTC markets oriented toward unlisted large companies and middling firms. Retail investors are thus expected to show interest in startups that have superb business items or boast high levels of technology with great growth potential, the KRX said.
Startups wanting to trade their shares on the KSM should meet a set of requirements: They should succeed in raising funds through crowdfunding programs online or receive recommendations from state-run financial institutions, such as the Industrial Bank of Korea and the Korea Development Bank.