Korea Exchange Union in Mourning Holds Rally in Front of Cheongwadae Opposing KOSDAQ Separation

As the government and the ruling party move forward with plans to convert Korea Exchange to a holding company structure and to spin off the KOSDAQ market as a subsidiary, the Korea Exchange labor union has launched an all-out struggle in response.

The head of the Korea Exchange union branch is speaking in front of the Cheongwadae Sarangchae in Jongno-gu, Seoul, on the afternoon of the 4th. Photo by Chunhan Lim

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On the afternoon of March 4th, about 350 members of the Korea Exchange labor union gathered in front of Cheongwadae Sarangchae in Jongno-gu, Seoul, holding a 'General Meeting of Union Members and All-Out Struggle Resolution Rally.' They chanted slogans such as, "Spinning off KOSDAQ is the return of the dot-com bubble," "Withdraw the KOSDAQ spin-off," "Separating market surveillance will lead to rampant unfair trading," "Converting Korea Exchange to a holding company will destroy the capital market," and "Unilateral conversion to subsidiaries is an unfair labor practice."

The union stated, "The reason we are wearing mourning clothes today is that this might be our last stand under the name of Korea Exchange," adding, "Korea Exchange may now disappear into history, and our colleagues are at risk of being torn apart as they are separated into different subsidiaries."

The union added, "We could give a one-hour speech on global management trends at Nasdaq or Japanese exchanges, but for those who respond with illogical arguments, we have no logic to offer either," vowing, "We will fight and resist to the very end."

The National Office and Financial Services Labor Union KRX Branch is shouting slogans in front of the Cheongwadae Sarangchae in Jongno-gu, Seoul, on the afternoon of the 4th. Photo by Chunhan Lim

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Lee Jaejin, chairman of the National Office and Financial Services Labor Union, criticized, "Without asking for a single word of our opinion, this political game of converting to a holding company and separating the KOSDAQ market is being played at the command of President Lee Jaemyung," and questioned, "Why does everything change like this whenever a new administration takes power?"

Lee continued, "Is the recent decline in stock prices because Korea Exchange has not been converted into a holding company?" He emphasized, "Even now, financial authorities can fully guarantee market soundness." He further argued, "Who is really undermining market soundness? It is the politicians interfering in the market."

The Korea Exchange branch of the National Office and Finance Service Labor Union is performing a 'Thousand Tornness' performance opposing the conversion to a holding company and separation of KOSDAQ in front of Cheongwadae Sarangchae in Jongno-gu, Seoul on the afternoon of the 4th. Photo by Im Chunhan

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The labor union directly refuted the logic of 'making KOSDAQ like Nasdaq.' A union representative stated, "KOSDAQ is a single market, whereas Nasdaq is an exchange operating multiple markets. Comparing the two on equal footing is fundamentally flawed," adding, "It's like comparing a local district to a metropolitan city, or making middle school students compete with university students." He went on to say, "Global major exchanges such as Nasdaq in the US and JPX in Japan are actually integrating various markets within a single exchange. Maintaining a growth ladder system, in which companies move from lower to higher markets as they develop, is the global standard."

The union warned that if KOSDAQ is spun off as a separate subsidiary and forced into excessive competition with KOSPI, it will lead to a decline in overall market quality. They pointed out that if the focus is solely on profit-driven competition, numerous unprepared and financially unstable companies will flood the market. This, they cautioned, would result in a repeat of the 'dot-com bubble' experienced in 1999, and the losses would ultimately be borne by individual retail investors.

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