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NameKorea Exchange (KRX)
CountryRepublic of Korea
Number of listed companies2,406
Domestic market capitalization2,218,658 million US$
SSE Partner ExchangeYes
Has annual sustainability reportNo
ESG reporting required as a listing ruleNo
Has written guidance on ESG reportingNo
Offers ESG related trainingYes
  • 2019 KRX Index Conference, which focused on ESG investment.
  • In 2022, KRX provided training on Climate-related Financial Disclosures (TCFD recommendations) in collaboration with the SSE, CDP and IFC. (source)

Market covered by sustainability-related indexYes

KRX Indices:

  • KRX ESG Leaders 150
  • KRX Governance Leaders 100
  • KRX Eco Leaders 100
  • KRX ESG Social Index
  • KOSPI 200 ESG.
 

Has sustainability bond listing segmentYes
  • KRX launched on June 2020 the SRI (Socially Responsible Investment) Bonds
    • The issuing proceeds of SRI bonds are used for projects that are eco-friendly or generate social benefits, and they are called green, social and sustainable bonds. They are also referred to as ESG, thematic and social contribution bonds.

Has SME listing platformYes

Women on boards mandatory minimum ruleYes
  • There is a mandatory minimum rule of at least 1 woman on boards. Source: MSCI. (2020). Women on Boards: 2020 Progress Report. Details of the rule: As of July 2020, a large listed company should not have a board comprising only one gender.
Additional information
Organizational model of stock exchange
  • Demutualized for profit; demutualization in progress.

Regulatory bodies

 

Regulatory model

Limited Exchange Self-Regulatory Organization (SRO) Model

  • The Korea Exchange has regulatory authority over the listing requirements and certain trading rules such as membership eligibility. The Securities and Futures Commission (SFC) is a sub committee of the Financial Services Commission (FSC); the organisation with the responsibility of Korea's financial markets. The SFC's primary regulatory responsibilities are: market surveillance, company accounting standards and audit reviews, as well as other responsibilities delegated from the FSC. There is a mix of regulatory authority but the majority, and some of the most important, responsibilities fall under Korea's SFC and FSC.

About the stock exchange

Location: Seoul, Republic of Korea

  • The Korea Exchange (KRX), which was launched in January 2005 by consolidating the four domestic markets, is committed to further the market credibility, customer-oriented management and confidence of organization, thus building up itself as a leading capital market in Northeast Asia. The Management Strategy Division establishes the business strategy and management reform agenda, and proposes the long-term vision necessary for enhancement of the KRXs reputation. (Source).