Korea Exchange to open new market for fractional investing in art, real estate from November

The Korea Exchange is set to introduce a novel securities market focused on fractional investing, allowing individuals to easily invest in diverse assets such as music copyrights, artwork, real estate, and films. This new electronic securities market is slated for an official launch in November, marking a significant step in bringing previously over-the-counter traded fractional investment products into the mainstream financial system.

The exchange announced its intention to open the new market within the year, targeting November 16 as the opening date. However, the exact launch may be adjusted based on the financial authorities' approval schedule for the investment products. Unlike traditional stocks, funds, or bonds, these new securities will derive their value from income-generating assets and rights, enabling multiple investors to participate in a single asset.

Investors will be able to trade these fractional investment securities on the exchange using the same methods as trading regular stocks, with trading hours set from 9:00 AM to 3:30 PM. To prepare for the official opening, the Korea Exchange plans to run a mock trading market for six weeks, from October 6 to November 13.

For a new fractional investment product to be listed, the issuing entity must meet a minimum equity capital requirement of 2 billion won to ensure investor protection. Additionally, the product itself must have a market capitalization of at least 3 billion won. The exchange had previously attempted to launch this market in December 2023 but faced delays due to difficulties in securing enough listed products.