Korea Exchange Considers Temporary 20-40% Reduction in Stock Trading Fees

In Response to Rapid Growth of Alternative Trading System NextTrade
Full-Scale Implementation if Approved at Next Month's Board Meeting

The Korea Exchange is reportedly considering a temporary reduction in stock trading fees starting this December.

According to the financial investment industry on October 22, the exchange is planning to lower stock trading fees by 20 to 40 percent from December 15 of this year to February 13 of next year.

This measure will be implemented if it is approved at the exchange's board meeting scheduled for November 14.

Currently, the exchange applies a single-rate fee of 0.0023 percent, but it intends to switch to a differential rate system and reduce the fees.

However, this is a temporary measure. The exchange can independently decide on fee adjustments or exemptions within a three-month period, but any extension beyond that requires a review by the Market Efficiency Committee under the Financial Services Commission.

The exchange's consideration of a fee reduction is interpreted as a response to the rapid growth of the alternative trading system (ATS) NextTrade. Since its launch in March, NextTrade's trading volume has surged, reaching the upper limit known as the "15 percent rule."