OTC market marks solid growth in 2018
The daily turnover of South Korea’s over-the-counter (OTC) stock market spiked nearly threefold year-on-year in 2018, data showed Wednesday.
The average value of transactions on the K-OTC per day stood at 2.77 billion won ($2.47 million) last year, up from 1.09 billion won logged in 2017, according to the data from the Korea Financial Investment Association (KOFIA).
The total market capitalization also rose 2.39 percent to 14.49 trillion won at the end of 2018.
In 2018, 18 firms made their debuts, compared with six newcomers in the previous year, bringing the total number of companies in the OTC market to 126 as of end-December, the lat- est data showed.
“After the state exemption from some taxes for minority shareholders, transactions appeared to have grown for investment in small and midsized firms, as well as startups,” KOFIA said in a release.
Last year, two entities moved from the OTC venue to the country’s tech-laden KOSDAQ market. Since its launch in 2014, a total of nine companies have transferred either to the main KOSPI or secondary KOSDAQ bourses.
The OTC market is the venue for trading unlisted blue chips. In August 2014, KOFIA revamped the previous OTC bourse to liven up trading in a bid to boost safety and convenience in trading unlisted stocks.