The End of Korea Exchange's Monopoly - Launch of ATS in Korea in 1H 2025

• KRX's monopoly is expected to end next year with the launch of ATS (Alternative Trading System) sometime in 1H 2025 (as early as March) in Korea.

• The company that is responsible for operating the ATS is called Nextrade which was established in November 2022. Nextrade's ATS received its preliminary approval in July 2023.

• Korea Exchange has been a money making machine. Although there have been repeated discussions of a potential listing of Korea Exchange in the past decade, this has yet to materialize.

Since its establishment in 1956 Korea Exchange (KRX)'s monopoly status in Korea has been unshaken. However, this monopoly is expected to end next year with the launch of ATS (Alternative Trading System) sometime in 1H 2025 (as early as March).

The company that is responsible for operating the ATS is called Nextrade which was established in November 2022. Nextrade's ATS received its preliminary approval in July 2023. The Financial Supervisory Service plans to confirm and present best execution obligation guidelines during the first half of this year. Accordingly, securities companies can establish related standards and an automatic securities order execution computer system.

More developed markets such as the United States and Japan already have numerous ATS operating in their countries. The United States has 24 regular exchanges and 65 ATS. Japan has one regular exchange and three ATS.