Korea Exchange to Help Mongolia Upgrade Trade System

By Park Hyong-ki

Staff Reporter

The Korea Exchange (KRX) and Mongolian Stock Exchange (MSE) signed a letter of intent at the MSE headquarters in Ulan Bator Friday.

Under the agreement, the Seoul exchange is to help the MSE upgrade its trading infrastructure by utilizing the KRX's IT system.

The promise initially follows a memorandum of understanding signed between the two sides in June 2006 when both exchanges looked forward to expanding bilateral ties in global trading.

So far, the KRX has agreed with Cambodia and Laos to support the development of their capital markets, and is moving to export its technology for IT trading systems there alongside Vietnam.

The exchange said it will also work with the MSE to attract Mongolian companies to go public in Korea. There are 383 firms listed on the MSE. As part of its plans for 2008, the exchange aims to go beyond China to increase foreign listings on the Seoul market.

The KRX noted that domestic securities companies have signed an underwriter contract with 19 foreign companies for share offerings. It expects 10 companies to be listed on the KOSPI and the Kosdaq markets by the year's end.

It added that both sides agreed for the KRX to purchase shares of the MSE to further boost partnership. It did not elaborate as to how much stakes it would buy in the Mongolian Exchange.

The planned upgrade for its trading system comes as this year marks the 17th anniversary of the birth of the MSE.

phk@koreatimes.co.kr