Korea Exchange's Global Strategy: Opportunities and Challenges

Abstract

Unlike US and European stock exchanges, which formed a spate of alliances towards the end of the last decade, Asian stock exchange markets have concentrated their efforts on cementing existing ties with each other (rather than on engaging in M&A activity) in order to broaden their product lineup and boost volumes. During this time, Korea Exchange (KRX) has been steadily pursuing a global strategy encompassing exporting trading systems, mainly to other Asian countries, helping countries without a stock exchange (Laos and Cambodia) to establish and operate one, attracting foreign companies, and forming closer ties with the Tokyo Stock Exchange (TSE) Group. This paper examines this strategy and what it has achieved, and considers the challenges it presents.

Keywords: Korea, KRX, stock exchange, global strategy

JEL Classification: G1, G15