Busan to Host Korea's First Dedicated Exchange for Fractional Investments

FSC Grants Preliminary Approval for OTC Exchange for Fractional Investments

Busan Attracts "KDX Consortium" as Dedicated Distribution Operator

The first dedicated exchange in Korea for the distribution of fractional investments will be established in Busan. Fractional investment is a method of investing in which an expensive asset is divided into equity shares, as if it were cut into pieces, so that multiple people can invest.

The Busan Metropolitan City Government (Mayor Park Heongjoon) announced on the 13th that, following the preliminary approval results for the Financial Services Commission's "over-the-counter exchange for fractional investments," it has attracted the "KDX Consortium," which will be in charge of fractional investment distribution, to Busan.

This preliminary approval is based on a newly introduced system by the Financial Services Commission aimed at facilitating the smooth distribution of fractional investment securities and strengthening investor protection. At its regular meeting on the same day, the Financial Services Commission resolved to grant preliminary approval to the "KDX Consortium," which is centered around Korea Exchange (KRX) and Koscom.

The KDX Consortium includes more than 40 institutions, including 24 domestic securities firms, fractional investment providers, and companies in fintech, blockchain, and IT security. It has a financial base with capital of more than 90 billion won, and is assessed to possess top-tier capabilities in building trading infrastructure nationwide. In particular, Busan-based financial and digital companies such as BNK Investment & Securities and BNK Busan Bank are participating, creating a high level of regional connectivity.

The city has been operating Busan's unique national blockchain regulation-free special zone and has promoted pilot projects such as digital IDs, digital vouchers, and real estate fractional investments. The consortium plans to establish the headquarters of the fractional investment exchange in Busan and to build the core IT systems within this year. Accordingly, the inflow of professionals in planning, technology development, and marketing, as well as positive spillover effects on the local economy, are also expected.

Fractional investment securities are financial products in which real assets such as real estate, copyrights, and artworks are issued and distributed in the form of digital securities. As Busan becomes able to issue products linked to its regionally specialized industries such as shipping, ports, automobiles, machinery, tourism, and culture, innovation in the capital market and the expansion of the foundation for industrial growth are anticipated.

Busan Mayor Park Heongjoon emphasized, "The attraction of this exchange is the result of Busan's continued efforts to build a digital finance ecosystem as a blockchain special zone city," adding, "We will strengthen cooperation with relevant institutions so that token securities and the digital finance industry can take root stably in Busan."

Overview of the brokerage business for issuance and distribution of fractional investments.

This content was produced with the assistance of AI translation services.