Korea's new bourse considers K-Pop tokens to lure traders

The upstart challenger to South Korea's main stock exchange is banking on fresh offerings, like digital tokens linked to K-pop song licenses, to build on its strong start and broaden appeal.

- YOUKYUNG LEE SEOUL (BLOOMBERG)

Kim Haksoo, chief executive officer of Nextrade Co, in Seoul.

(BLOOMBERG)

Nextrade, an alternative trading system that broke the Korea Exchange's 70-year monopoly in March with extended trading hours, is weighing over-the-counter products to differentiate itself, Chief Executive Officer Kim Haksoo said. Longer-term plans include leveraged and inverse ETFs, advanced order systems, and non-displayed institutional orders that are derivative of the “dark pool” concept.

“Rather than simply competing with the Korea Exchange, we need to consider whether we can secure competitiveness by offering products that it doesn’t have,’ Mr Kim told Bloomberg News last week. “We need to compete on quality”

Mr Kim's comments reflect Nextrade’s aim to be more than a typical trading venue, positioning itself as a disruptor in a market shaped by longstanding practices. By responding to retail investor demand and embracing emerging fintech trends, it hopes to expand what Korea's markets offer and attract broader participation at home and abroad.