J-Stok Introduces 'Manner Temperature' for Direct Trading of Unlisted Unissued Stocks

Introduction of Member Evaluation and Activity History Inquiry Function
Technical Overcoming of Self-Verification Limitations

[Asia Economy Reporter Kwangho Lee] JStock has embarked on an experiment to introduce a "manner temperature" system in direct trading of unlisted stocks. By implementing a member-to-member evaluation system, the company aims to systematically resolve the trust issues that have been a major participation barrier in the unlisted stock market.

According to industry sources on the 4th, JStock recently upgraded its mobile unlisted information platform, "JStock Unlisted," by adding a member evaluation feature. Currently, this feature is available only on Android OS, with plans to expand to iOS OS in the future.

This member rating system is the first attempt for an unlisted platform that handles even non-issued stock items. In this market, which has been virtually monopolized by 38 Communication, there was no proper protection mechanism for direct trades between members. Members had to contact each other by phone numbers posted on bulletin boards and bear all associated risks along with profit opportunities through "self-verification" alone.

Although new brokerage platforms like Dunamu's Securities Plus Unlisted have emerged as innovative financial services to mitigate the risks of unlisted stock investments, limitations remain. In July, financial authorities mandated these platforms to strengthen the requirements for tradable items to a level similar to K-OTC, an over-the-counter stock market operated by the Korea Financial Investment Association, resulting in a significant reduction in the number of tradable items.

As a result, most unlisted stock transactions have been blocked, driving potential investors back to information platforms such as 38 Communication and JStock Unlisted. According to Black Kiwi, a big data-based keyword analysis platform, the search volume for Securities Plus Unlisted was 7,400 times in the past month, which is only about 3% of 38 Communication’s search volume (approximately 220,000 times) during the same period. The search volume for JStock Unlisted, launched last month, is expected to increase by nearly 40% in November compared to the previous month.

In response, JStock aims to enhance the reliability of the unlisted market by positioning itself as an information platform rather than a brokerage, while adding additional features that 38 Communication does not provide. To this end, the company recently piloted a member evaluation and reputation inquiry function in the Android version of the "JStock Unlisted" app.

JStock Unlisted members can check ratings, reviews, the number of electronic contracts, and posts about other members before deciding whether to engage in direct trading. This attempt reduces risks that may arise from self-verification through transparent disclosure of member histories. Additionally, a dual protection mechanism is in place, such as requiring identity verification during electronic contracts.

JStock plans to technically resolve various issues raised in the unlisted direct trading market. A JStock representative stated, "In addition to requiring identity verification when posting, we have created a dual protection mechanism. We will continue to strengthen related functions and information so that members can make rational decisions based on sufficient information."