South Korea witnessed a significant shift in its financial landscape as a new stock exchange emerged, putting an end to a 70-year monopoly held by the Korea Exchange. This historic development marked the inauguration of Nextrade, a secondary stock trading platform that opened its doors to traders on Tuesday. The establishment of Nextrade broke the long-standing dominance of the Korea Exchange, which had been the exclusive securities exchange in South Korea since its inception in 1956.

The debut of Nextrade is anticipated to broaden market accessibility and enhance liquidity, ultimately fostering the growth of the stock market. Notable features of the new exchange include extended trading hours, operating for 12 hours daily compared to the Korea Exchange’s 6.5 hours, and offering lower transaction fees. Nextrade’s CEO, Kim Hak-soo, emphasized the rigorous testing conducted to ensure system reliability and the implementation of safeguards to uphold market stability.

Initially, trading on Nextrade will involve ten listed stocks from the Kospi and Kosdaq indices. Over time, the platform plans to expand its listings, with a target of 800 stocks by the end of March, including major industry players like Samsung and SK hynix. The introduction of this secondary exchange is expected to enhance trading convenience for investors, as highlighted by the country’s financial regulatory body.

Experts view South Korea’s move towards multiple stock exchange platforms as a step towards aligning with global standards observed in advanced economies. Kim Dae-jong, a business professor at Sejong University, noted that diversified exchanges promote healthy competition, reduce transaction costs, and extend trading hours, benefiting consumers by driving down fees and improving overall market conditions.

The emergence of Nextrade represents a significant milestone in South Korea’s financial history, signaling a departure from a monopoly-driven market towards a more competitive and dynamic trading environment. As the country embraces this new era of stock trading, stakeholders anticipate positive outcomes in terms of market efficiency, investor accessibility, and overall economic growth.