From Q2 Next Year, Public Offering Funds Will Be Traded Like Stocks

Starting from the second quarter of next year, general public offering funds will be tradable on the exchange like stocks.

On the 14th afternoon, the Financial Services Commission held an on-site meeting for the public offering fund listing and trading service at the Korea Financial Investment Association in Yeouido, Seoul, with related organizations and participating companies to check the preparation status of the service. The public offering fund listing and trading service was designated as an innovative financial service (sandbox) at the Financial Services Commission's regular meeting the day before.

Accordingly, investors will be able to invest in public offering funds at much lower costs than through the sales firms' online and offline channels, and they will be able to conveniently trade through the securities firms' mobile applications they use without going through complicated subscription and redemption procedures.

At the meeting, Park Min-woo, Director of the Capital Markets Bureau at the Financial Services Commission, emphasized, "For listed public offering funds to be chosen by the market, there must be many successful cases achieving excess returns compared to benchmarks."

Im Kwon-soon, Director of Asset Management Supervision at the Financial Supervisory Service, stated, "Close cooperation between asset management companies and liquidity provider (LP) securities firms is necessary to prevent investor damage during the operation of listed public offering funds."

The Financial Services Commission plans to prepare exchange regulations within this year, and after system reforms at the exchange and the Korea Securities Depository in the first quarter of next year, as well as exchange listing reviews, it will start trading listed public offering funds from the second quarter of next year.