Stock Market Debut of Market Kurly Sparks Excitement in Unlisted Stocks "Cheapest Now"... K-OTC Market Cap Approaches 50 Trillion Won

[Asia Economy Reporter Lee Seon-ae] The unlisted stock market is stirring. As Market Kurly, one of the spotlighted companies, begins to make serious moves toward its stock market debut, investor sentiment to buy before the listing is expected to attract even more investors.

According to the Korea Financial Investment Association on the 21st, the market capitalization of 'K-OTC,' the only regulated unlisted stock trading market in Korea, is expected to approach 50 trillion won within the first half of the year. This is due to the overall increased interest from investors in unlisted companies such as Market Kurly, which has not yet registered but is about to submit a preliminary listing examination application, as well as Viva Republica and Dunamu. As a result, investors are expected to continue flocking to the K-OTC market, where trading is considered most stable.

Last year, the market capitalization of K-OTC was 31 trillion won, an increase of 14 trillion won compared to 2020. The average daily trading volume was 5.64 billion won, up 9.5% (490 million won) from the previous year (5.15 billion won). The annual trading volume recorded an all-time high of 1.4 trillion won.

This year, records are being broken again. On February 14, the market capitalization surpassed 40 trillion won, and on the 17th, it exceeded 46 trillion won, raising expectations for breaking through 50 trillion won. The daily trading volume remained close to 50 trillion won and surged to 18.5 billion won on the 15th.

The Korea Financial Investment Association explained, "Tax benefits such as capital gains tax exemption for small shareholders and reductions in securities transaction tax, along with increased investor interest in unlisted stocks recognized as promising future investment destinations, have led to a continuous increase in trading volume."

Currently, there are 41 registered companies and 104 designated companies, totaling 145 companies in the K-OTC market. The association stated, "Companies from various industries, including secondary battery electrolytes and biotechnology, have been incorporated into the market, leading to continuous quantitative and qualitative growth of trading companies."

K-OTC, operated and managed by the Korea Financial Investment Association, allows convenient trading of unlisted stocks through securities firms' Home Trading Systems (HTS) and Mobile Trading Systems (MTS). It is the only regulated unlisted stock trading market in Korea. Dunamu's 'Securities Plus Unlisted' and PSX's 'Seoul Exchange Unlisted,' which also allow trading of unlisted stocks, have not yet received financial investment business licenses. Since April 2020, they have operated unlisted stock trading services under the designation of innovative financial services. The Financial Services Commission will decide on the extension of these platforms' innovative financial service status at its regular meeting on the 30th. Authorities have decided not to push these services to the brink of suspension, given the activation of unlisted stock trading. However, they are expected to grant conditional approval for a two-year extension, strengthening trading requirements for circulating stocks to levels similar to K-OTC and establishing guidelines for transparent market operation.