- Listing Criteria (Article 113 of KOSPI Market Listing Regulation)
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Listing Criteria (Article 42-2 of the Securities Market Listing Regulation) Category Domestic ETFs Foreign ETFs Size Principal amount of trust At least KRW 7 billion At least KRW 7 billion
(based on domestic circulation, exchange rate at the time of listing)No. of beneficiary certificates At least 100,000 units At least 100,000 units
(based on domestic circulation, exchange rate at the point of listing)Liquidity No. of authorized participants At least 1 company No. of Liquidity Provider At least 1 company At least 1 company Agreement on use of underlying index necessary Requisite of the asset composition / Operations - In case of In-kind Creation
- ⅰ) In the case of ETF aiming to track a security price index or a security price: Assets must be composed of at least 95% of market capitalization of index, and at least 50% of the number of constituents of index.
However, in cases where the index tracked is simple average of security price, the asset must be composed of all constituents of index.
- ⅱ) In the case of ETF aiming to track an index or price other than security price index or a security price: Asset must be composed of at least 95% of the price or index tracked.
- ⅰ) In the case of ETF aiming to track a security price index or a security price: Assets must be composed of at least 95% of market capitalization of index, and at least 50% of the number of constituents of index.
- In case of Cash Creation
- In cases of any of the following cases where it is difficult to use the in-kind creation method, ETF may be created using the cash creation method.
- ⅰ) In the case of ETF tracking the price or index that are not traded on an exchange
- ⅱ) In cases where the inclusion of exchange traded derivatives or OTC derivatives is an important way of tracking the price or index
- ⅲ) In cases where the KRX deems it difficult to create ETF by way of the in-kind creation, in view of various factors such as the nature of market where the underlying asset is traded or efficiency of asset management
- In cases of any of the following cases where it is difficult to use the in-kind creation method, ETF may be created using the cash creation method.
- In the case of using the cash creation method, the following matters must also be stipulated in the collective investment agreement:
- ⅰ) Price/index tracked, the method of tracking the price or index, the weight of asset other than the constituents of index and weight of derivatives in the asset
- ⅱ) The following matters, in case of including OTC derivatives as asset: Internal control guidelines, including disclosure of risks and risk-control procedures
- ⅰ) Price/index tracked, the method of tracking the price or index, the weight of asset other than the constituents of index and weight of derivatives in the asset
Same as left Listings on foreign exchange - prerequisite Registration requirement for foreign collective investment schemes - Required to register with FSC for sale in Korea - In case of In-kind Creation
- Documents to be submitted
- Listing Examination Application which is provided by KRX
- Document proving registration with FSC
- Investment Prospectus
- Copy of agreement on the use of index tracked
- Copy of an agreement concluded with an authorized participants, including the agreement for liquidity provision) arranged participating company (including a liquidity supply agreement)
- Copy of OTC derivatives contract when there is concerning contract
- Documents proving the total issuance quantity
- Documents confirming that stated in depositor's account book
- Documentary proof on payment of trust amount, etc.
- For Investment Trust
- Copy of trust agreement
- A document stating a management plan for the entrusted asset of investment trust
- For Investment Company
- Copy of articles of incorporation
- A document proving the transfer agent of the stock and a copy of corporate registration
- Corporate register
- Copy of contract on entrustment of business affiars with general administration company
- Other documents that the Exchange deems necessary for the purpose of reviewing the listing application 주의The documents under the entry number 7 through 9 may be submitted by the day before the listing day.
- Listing Fees (Article 128 and Table 10 of Enforcement Regulation of KOSPI Market Listing Regulation)
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- Fee for listing examination: 5mil. KRW
- Listing change : 300 thou. KRW
- Fee for initial listing: The fee for initial listing ETF is 1/3 of the amounts shown in the following Table
(the amount less than KRW 10 is discarded).
Listing Fees (Article 128 and Table 10 of Enforcement Regulation of KOSPI Market Listing Regulation) Equity capital(trust principal) Fee rate KRW 50 billion or less 1mil. KRW Exceeding KRW 50 billion, but KRW 100 billion or less 5 mil KRW + 75,000 KRW per 1 bil. KRW exceeding 50 bil. KRW Exceeding KRW 100 billion, but KRW 200 billion or less 8.75 mil KRW + 60,000 KRW per 1 bil. KRW exceeding 100 bil. KRW Exceeding KRW 200 billion, but KRW 500 billion or less 14.75 mil KRW + 45,000 KRW per 1 bil. KRW exceeding 200 bil. KRW Exceeding KRW 500 billion, but KRW 2 trillion or less 28.25 mil KRW + 35,000 KRW per 1 bil. KRW exceeding 500 bil. KRW Exceeding KRW 2 trillion, but KRW 5 trillion or less 80.75 mil KRW + 25,000 KRW per 1 bil. KRW exceeding 2 tril. KRW Exceeding KRW 5 trillion, but KRW 10 trillion or less 155.75 mil KRW + 15,000 KRW per 1 bil. KRW exceeding 5 tril. KRW Exceeding KRW 10 trillion 230.75 mil KRW + 5,000 KRW per 1 bil. KRW exceeding 10 tril. KRW