Characteristics of the KONEX MarketGLOBAL PREMIER EXCHANGE
A market specialized for SMEs
KONEX, as a market where only SMEs can be listed pursuant to the Framework Act on Small and Minor Enterprises, is specialized for the early SMEs.
To promote the growth of SMEs with technological potentials, SMEs are allowed to enter the market in various ways including public offerings, private placements and direct listing, , being applied with lowered entry criteria. In addition, KONEX market eased disclosure obligations for listed SMEs by exempting them from quarterly and semiannual reports and reducing the timely disclosure matters, and alleviated the burden of governance structure by exempting the duties of appointment of outside directors and standing auditors.
A market supporting virtuous circle of venture capital and corporate restructuring
KONEX market has the market participants limited to professional investors. However, it supports virtuous cycle of a venture capital (startup → growth → collection of investment → reinvestment) by allowing the participation of venture capital (including the small and medium business startup investment cooperative, etc.) and angel investors, which are recognized for their investment professionalism.
Taking into consideration the importance of M&As
Taking into consideration the importance of M&As for the growth and competitiveness of SMEs, the KONEX market eased the merger criteria (including back-door listing) and introduced block trading and auction systems, to facilitate sales of shares and active M&As.