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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] NextTrade will mark its first anniversary on March 4, according to the financial investment industry. Since launching with just 10 listed stocks and daily trading value of KRW 20.2 billion in March last year, the platform has expanded significantly.
As of Feb. 27, the number of tradable stocks stood at 644, with daily trading volume reaching 311.93 million shares and transaction value totaling KRW 35.4 trillion—reflecting rapid growth alongside a buoyant stock market.
The surge in market participation enabled NextTrade to post a profit in its first year of operation. The company recorded operating revenue of KRW 64.4 billion last year, with operating profit and net profit of KRW 14.6 billion and KRW 20.5 billion, respectively, reversing losses from the previous year.
Daily trading value surpassed KRW 10 trillion in June, KRW 20 trillion in October, and exceeded KRW 30 trillion last month. Average daily trading value so far this year has nearly tripled compared to last year’s average, reaching over KRW 21.5 trillion.
However, NextTrade has been adjusting the number of listed stocks to comply with the so-called “15% rule.” Under the Enforcement Decree of the Capital Markets Act, the six-month average daily trading volume of an alternative exchange must not exceed 15% of that of the Korea Exchange. Between May and October last year, NextTrade’s average daily volume exceeded that threshold at 15.66% of KRX trading volume.
Industry officials noted that while NextTrade’s launch has ended the Korea Exchange’s monopoly, extended trading hours and other countermeasures by KRX could affect competition. Nonetheless, they expect the impact to remain limited, as NextTrade can respond by adjusting the number of tradable stocks.
Looking ahead, NextTrade plans to expand into exchange-traded funds (ETFs) and fractional investment products. Last month, a consortium led by NextTrade—including Musicow, Shinhan Securities, Hana Securities, and others—received preliminary approval from financial regulators to establish an over-the-counter marketplace for tokenized securities (STO)-based fractional investments.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
