South Korea made history by launching its second stock exchange, breaking a 70-year monopoly held by the Korea Exchange. This new trading platform, Nextrade, opened its doors at 10:00 am, offering investors the opportunity to trade prominent tech stocks like Samsung and SK hynix. The move marks a significant shift in the country’s financial landscape, aiming to enhance market accessibility and liquidity, ultimately expanding the stock market.

Established in 1956, the Korea Exchange had been the sole securities exchange in South Korea for almost seven decades until the emergence of Nextrade. The Chairperson of the financial services commission, Kim Byeong-hwan, expressed optimism about the new exchange’s impact on the market. Nextrade differentiates itself by operating for 12 hours a day, doubling the Korea Exchange’s trading hours, and imposing lower fees, making it more attractive to investors.

Nextrade’s CEO, Kim Hak-soo, emphasized the rigorous testing conducted to ensure the platform’s reliability and market stability. Initially, trading on Nextrade will involve ten listed stocks from Kospi and Kosdaq, gradually expanding to 800 stocks by March 31, including major players like Samsung and SK hynix. The introduction of this new exchange is expected to improve trading convenience for investors, as stated by the country’s financial watchdog.

According to Kim Dae-jong, a business professor at Sejong University, South Korea’s move to establish a second stock exchange aligns with practices in advanced economies worldwide. Having multiple exchanges fosters healthy competition, reduces transaction costs, and extends trading hours, benefiting consumers by lowering fees and enhancing market conditions.

The introduction of Nextrade reflects South Korea’s commitment to modernizing its financial infrastructure and aligning with global standards. This development signifies a significant step towards diversifying the country’s stock market and fostering a more competitive trading environment. As South Korea embraces this new era of financial evolution, the future holds promising opportunities for investors and market participants alike.