By Seo Jee-yeon
Staff Reporter
The Korea Times
Korea will establish a joint stock exchange in Cambodia as part of moves to strengthen ties with Southeast Asian bourses, according to the Korea Exchange (KRX) Monday.
``We’ve recently sent a draft memorandum of understanding to the Cambodian government to proceed with the project to set up a joint stock exchange,’’ a KRX official, Kim Bong-tae, said.
He said that the two sides are expected to sign a contract in the near future and they will start work on the establishment of the bourse within this year.
``After signing the MOU, we will train personnel and over the next three years build a system for the stock market operation in the Southeast Asian country,’’ Kim said.
In return for its support, KRX will take a stake in the Cambodian Stock Exchange, he added.
``It has not been decided yet how much stake KRX will take in the Cambodian bourse. We expect a 49 percent stake in the venture,’’ Kim said.
It is the second time for KRX to be involved in a stock exchange building project overseas after a similar project in Vietnam in 2000. KRX does not hold a stake in the Vietnamese exchange.
The joint project with the Cambodian government is part of government-level efforts to build a financial infrastructure in Cambodia, which was promised by Finance-Economy Minister Han Duck-soo in the Association of Southeast Asian Nations (ASEAN) +3 meeting held in Malaysia last May.
The government has pushed for the project to secure a foothold in the Southeast Asia’s financial market, which will help the nation achieve its goal of becoming a financial hub in Asia.
After setting up a stock exchange in Cambodia, Korea will also launch a project to construct an intra-bank electronic settlement system for the Southeast Asian country.
It expects increased influence of Korea’s financial standards in Southeast Asia will also give domestic financial institutions easier access to the promising market.
The project will also serve KRX’s objective to raise its presence in Southeast Asia.
``Besides the Cambodian project, KRX is pressing ahead with a system export project in Malaysia and Pakistan,’’ Kim said.
For cooperation with stock exchanges in advanced nations, KRX also has sought equity swaps or equity investment deals.
Last month, KRX signed an MOU with the Tokyo Stock Exchange on a ``Market Alliance Project.’’ The purpose of the MOU is to set forth a framework to foster cross-border capital flow between the two countries. In the longer term, both stock exchanges are expected to seek cross equity investments for a closer partnership.
jyseo@koreatimes.co.kr
``We’ve recently sent a draft memorandum of understanding to the Cambodian government to proceed with the project to set up a joint stock exchange,’’ a KRX official, Kim Bong-tae, said.
He said that the two sides are expected to sign a contract in the near future and they will start work on the establishment of the bourse within this year.
``After signing the MOU, we will train personnel and over the next three years build a system for the stock market operation in the Southeast Asian country,’’ Kim said.
In return for its support, KRX will take a stake in the Cambodian Stock Exchange, he added.
``It has not been decided yet how much stake KRX will take in the Cambodian bourse. We expect a 49 percent stake in the venture,’’ Kim said.
It is the second time for KRX to be involved in a stock exchange building project overseas after a similar project in Vietnam in 2000. KRX does not hold a stake in the Vietnamese exchange.
The joint project with the Cambodian government is part of government-level efforts to build a financial infrastructure in Cambodia, which was promised by Finance-Economy Minister Han Duck-soo in the Association of Southeast Asian Nations (ASEAN) +3 meeting held in Malaysia last May.
The government has pushed for the project to secure a foothold in the Southeast Asia’s financial market, which will help the nation achieve its goal of becoming a financial hub in Asia.
After setting up a stock exchange in Cambodia, Korea will also launch a project to construct an intra-bank electronic settlement system for the Southeast Asian country.
It expects increased influence of Korea’s financial standards in Southeast Asia will also give domestic financial institutions easier access to the promising market.
The project will also serve KRX’s objective to raise its presence in Southeast Asia.
``Besides the Cambodian project, KRX is pressing ahead with a system export project in Malaysia and Pakistan,’’ Kim said.
For cooperation with stock exchanges in advanced nations, KRX also has sought equity swaps or equity investment deals.
Last month, KRX signed an MOU with the Tokyo Stock Exchange on a ``Market Alliance Project.’’ The purpose of the MOU is to set forth a framework to foster cross-border capital flow between the two countries. In the longer term, both stock exchanges are expected to seek cross equity investments for a closer partnership.
jyseo@koreatimes.co.kr
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