Exchange Confirms 22 Low-Liquidity Stocks for Single-Price Trading Application Next Year

The Korea Exchange announced on the 28th the final list of low-liquidity stocks that will be traded using a single-price auction method throughout next year to enhance the price discovery function for stocks with low trading frequency.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

The Exchange evaluates the liquidity level of listed stocks on an annual basis and classifies stocks with an average transaction interval exceeding 10 minutes as low-liquidity stocks, to which the single-price auction method is applied.

The liquidity assessment results for selecting low-liquidity stocks subject to single-price auction in 2024 finalized a total of 22 stocks, including 21 stocks on the KOSPI market and 1 stock on the KOSDAQ market. These stocks include Gyeyang Electric Preferred, Kumkang Industrial Preferred, Nexen Preferred, Daeduk 1 Preferred, Dongyang Preferred, Miwon Chemical, Buguk Securities Preferred, Seoul Food Preferred, Sungmoon Electronics Preferred, Shin Young Securities Preferred, Yuhwa Securities Preferred, Jinheung Enterprise Preferred B, Korea Circuit 2 Preferred B, Crown Haitai Holdings Preferred, Korea Parallel, Heungkuk Fire & Marine Insurance Preferred, Clean Country Preferred, Dongyang 2 Preferred B, Samyangsa Preferred, Yuyu Pharma 2 Preferred B, Ilyang Pharmaceutical Preferred, Johung, Cheonil Express, Hanyang Securities Preferred, BYC Preferred, CJ Seafood 1 Preferred, JW Choongwae Pharmaceutical 2 Preferred B, JW Choongwae Pharmaceutical Preferred, Kumho Construction Preferred, Dongwon Systems Preferred, Samyang Holdings Preferred, Jinheung Enterprise 2 Preferred B, Hite Jinro Holdings Preferred, and Daehotuksugang Preferred. Among the 34 stocks meeting the low-liquidity criteria, 12 stocks were excluded due to designation of liquidity providers (LP).

The stocks finally confirmed for single-price auction will be traded using a 30-minute interval single-price auction method throughout 2024. After January, the status of LP contracts and liquidity levels will be reflected on a monthly basis to exclude or reapply stocks from the single-price auction list. If a low-liquidity stock excluded from the single-price auction due to LP contract or liquidity improvement has its LP contract terminated or liquidity level deteriorates again, the single-price auction will be reapplied from the following month.