 Lee Young-tak, left, CEO of the Korea Exchange, shakes hands with Bank of Laos Governor Phouphet Khamphounvong at the exchange's headquarters in Yeouido, Seoul after signing a memorandum of understanding, Wednesday. / Courtesy of KRX |
By Park Hyong-ki
Staff Reporter
The Korea Exchange (KRX) said it signed a memorandum of understanding Wednesday to help Laos establish its first stock exchange by 2010.
Laos will have its bourse, if set up, run by central bank. Laos said it chose the KRX as a partner because it showed much enthusiasm and seriousness in cooperating with the Southeast Asian nation in creating such an exchange market from scratch.
``The other factor in selecting KRX for us is that it has many experiences and practices,'' said the Bank of Laos Governor Phouphet Khamphounvong in a press conference held at the exchange headquarters in Seoul after the MOU signing ceremony.
Under the agreement, the KRX will help set up Laos' main bourse as a joint venture with the Southeast Asian country, and provide training and consultations on global stock trading and digital networking system.
Laos, in return, will encourage its state-run enterprises to go public on the Korean stock market ahead of the establishment of the Lao bourse.
The Laos' central bank governor said that the exchange will help prepare the groundwork for its companies to list on the stock market here.
``The project with Laos will test the exchange's globalization and help spur the market in becoming a financial hub,'' said CEO Lee Young-tak of the KRX.
The two sides engaged in talks of building a Laos stock market since April this year.
Its central bank governor said that the nation finds it necessary to build a stock market for financial sustainability and the improvement of its investment and trade environment.
Besides Laos, the exchange has so far agreed to back Vietnam and Cambodia in developing stock markets there as part of its globalization projects.
phk@koreatimes.co.kr
