On March 4, Nextrade 넥스트레이드 will open as South Korea’s first alternative trading system, ending the 70-year monopoly of Korea Exchange 한국거래소 as the sole venue for buying and selling stocks. The new exchange will initially list ten companies, including Lotte Shopping 롯데쇼핑 and Kolon Industries 코오롱 인더스트리, and will gradually grow to list more than 800.
Companies may elect to list on both Korea Exchange and Nextrade, and investors may elect to buy shares from either exchange. Nextrade will open one hour earlier than Korea Exchange and close 4.5 hours later, and charges up to 40% less in transaction fees, enabling a higher volume of trading and arbitrage opportunities.