K-OTC

1. 본문

The K-OTC (Korea Over-The-Counter) market is a platform for trading unlisted stocks in South Korea. It is operated by the Korea Financial Investment Association (KOFIA) and was established to promote transparent and robust transactions of unlisted stocks.

Here's a breakdown of key aspects of the K-OTC:

• Purpose: It provides a regulated and organized market for trading shares of companies that are not listed on major stock exchanges like KOSPI or KOSDAQ. It helps unlisted small and medium-sized enterprises(SMEs) to get direct investments. The goal of K-OTC is to serve as a pre-KOSDAQ market.
• Regulation: The K-OTC market is established and operated under the Financial Investment Services and Capital Markets Act.
• Operation: KOFIA, which also successfully launched KOSDAQ, operates the K-OTC market and the OTC Bond Market.
• Structure: The K-OTC market is divided into two sections:
• K-OTC market: For unlisted corporations that meet disclosure requirements or submit annual reports.
• K-OTCBB: A bulletin board for all unlisted stocks, regardless of disclosure compliance.
• K-OTC PRO: Established in 2017, this is a membership-based platform for professional and institutional investors to trade unlisted stocks and facilitate corporate financing.
• Trading: Trading on the K-OTC can be done through securities companies or home trading systems (HTS). The trading method involves matching buy and sell orders, and the trading hours are from 9:00 AM to 3:30 PM, with a price fluctuation limit of ±30%.
• Requirements: The requirements for companies to be listed on K-OTC are minimal compared to regular markets. These include having a minimum revenue of 500 million KRW in the most recent business year, with requirements regarding full capital impairment.
• Risk: Due to minimal regulations, investors must thoroughly research and understand the risks associated with investing in unlisted companies.

In Korean, K-OTC is referred to as "협회장외시장" (hyeophoejangoisijang), which translates to "Association Over-The-Counter Market." K-OTC aims to provide a stepping stone for companies to eventually list on the KOSDAQ.