By Yoon Ja-young
Staff Reporter
Korea Exchange (KRX), the country's stock market operator, said it signed a Memorandum of Understanding (MOU) with Ho Chi Minh Stock Exchange (HOSE) to boost strategic cooperation.
The KRX supported the establishment of the Vietnamese stock exchange in 2000. The two discussed further cooperation, such as the listing of blue chip Vietnamese businesses on the Seoul bourse and refurbishing of the stock trading system.
The exchange has signed MOUs with 26 stock market operators in 16 countries so far. KRX took charge of the bond trading system project in Malaysia and is cooperating with stock market operators in developing countries in Asia such as Cambodia, Laos, Mongolia and Ukraine, exchanging staff, setting up trading systems and regulations. Korea is setting up a stock exchange in Laos and Cambodia in the form of a joint venture.
``We will use this memorandum as an opportunity to advance in the international bid for Vietnam's next-generation trading system,'' said KRX CEO Lee Young-tak. KRX said it is part of the efforts to support emerging stock markets. It plans to expand technological assistance in the Vietnamese stock market.
HOSE CEO Tran Dac Sinh, on a visit to Seoul for the signing of the memorandum, said KRX has a better understanding of the Vietnamese stock market than other stock market operators. He said Vietnam is planning to make improvements in the stock market operation. It is scheduled to refurbish regulations regarding trading, accounting, and reporting. ``The setting up of technical infra-structures will play a critical role in enhancing market transparency,'' the CEO said.
Choi Hong-sik, executive director of the global business development at KRX, said Korea has strength in its IT system. ``Korea is the only stock market where the whole investment procedure is computerized. No one can match the Korean stock market's IT system,'' Choi said. KRX is one of the major IT developers among global stock markets.
He said emerging stock markets in Asia find KRX's willingness to transfer technology and know-how very attractive.