Exchange Confirms 23 Low-Liquidity Stocks for Single-Price Trading Next Year

The Korea Exchange announced on the 30th that it has finalized 23 low-liquidity stocks to be traded using a single-price auction method for one year starting next year due to low trading frequency.

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

These stocks include 21 items in the KOSPI market: Miwon Chemical, Miwon Holdings, Kyeyang Electric Preferred, Kumkang Industrial Preferred, Nexen Preferred, Green Cross Holdings 2 Preferred, Dongyang Preferred, Bukook Securities Preferred, Seoul Food Preferred, Yuhwa Securities Preferred, Jinheung Enterprise Preferred B, Korea Circuit 2 Preferred B, Crown Haitai Holdings Preferred, Kumho Construction Preferred, Clean Country Preferred, Dongyang 2 Preferred B, Samyang Holdings Preferred, Yuyu Pharma 2 Preferred B, Ilyang Pharmaceutical Preferred, Jinheung Enterprise 2 Preferred B, and Sungmoon Electronics Preferred.

In the KOSDAQ market, two stocks, Daehotuksugang Preferred and Softcen Preferred, have been designated for single-price auction trading.

The single-price auction is a stock trading method that, unlike the general method of executing trades whenever orders are placed, collects orders over a certain period and executes trades at a single price at a specific time.

The Exchange evaluates the liquidity level of listed stocks on an annual basis (from October of the previous year to September) and selects low-liquidity stocks for single-price auction trading if the transaction cycle exceeds 10 minutes.

However, if a company implements liquidity improvement measures such as designating liquidity providers (LPs) or if liquidity levels significantly improve, the stock is excluded from the single-price auction trading list.

This time, six stocks?BYC Preferred, Daeduk 1 Preferred, SeAH Holdings, Johung, Cheonil Express, and Hanyang Securities Preferred?are exempt from single-price auction trading due to LP contracts.

Meanwhile, six stocks?CJ Seafood 1 Preferred, JW Choongwae Pharmaceutical 2 Preferred B, JW Choongwae Pharmaceutical Preferred, Dongbu Construction Preferred, Dongwon Systems Preferred, and Hite Jinro Holdings Preferred?are subject to continuous single-price auction trading regardless of selection as single-price auction stocks because they are preferred stocks with fewer than 500,000 shares outstanding despite having LP designation contracts.