Koscom, the IT division of the Korea Exchange, has just announced that it will be building a blockchain platform for trading unlisted securities in partnership with five other local South Korean companies. The partnership seeks to make these transactions as affordable, fast and secure as possible, thereby increasing their accessibility by a large range of potential investors. This is another pointer to the development of notable Korean blockchain partnerships.
Reportedly, Korea has certain issues with trading shares in relatively small companies because the expenses involved are usually a little too high. Companies currently not established enough to be a part of the Korea Composite Stock Price Index (KOSPI), the Korea New Exchange (Konex) or the Kosdaq Secondary board; are currently suffering this problem. These companies sometimes still have to handle unlisted shares by hand, receiving telephone orders or through messaging and having to make these records using traditional Excel spreadsheets. This method apart from being terribly cumbersome, is very prone to mistakes. It also means that participating investors have little to no access to early trades like others do.
Apart from Koscom, the other companies in the partnership include KEB Hana Bank, Hana Financial Investment, Daejeon Techno Park, Amicus Rex and the Korea Accelerator Association. The partnership intends to offer specialised and tailored services to these small institutions, helping them figure out their blind spots and work towards solving the problem.
Using blockchain, the partnership hopes to be able to bridge whatever gaps that may be hindering the smaller firms and also ensure unmatched transparency. Escrow services will be handled by KEB Hana while support methods will be offered by Hana Financial Investments. Legal help will be offered by Amicus Rex and for marketing and promotion, both the Korea Accelerator Association and Daejon Techno Park will take the lead.