Trading of treasury stocks in the exchange market is separately regulated to minimize the impact on market prices and to avoid the possibility of unfair trading such as misuse of inside information.
Members should place the order within the price range as specified below, after receiving the order from the listed company on the trading day. The order placement must be made by 15:00, which is 30 minutes before the regular session closing. After then, members are not allowed to place orders to trade treasury stocks.
※ Price Range
|Before Regular Session||
|During Regular Session||
In case where there has not been a trade until the placement of the treasury stock order, the base price for the day will be regarded as 'the highest price' and the 'the last traded price'.
Cancelling of already placed orders is not allowed while price corrections are allowed within the price range above. In addition, as the treasury stock trading has restrictions on quotation, only limit orders are allowed.
Treasury stocks can be disposed through the off-hours block trading. In this case, the price range is between the 5% higher and 5% lower of the closing price (within upper and lower price limit of the day) for the day (the previous day in case of off-hour session before the market opening.) However, acquisition of treasury stocks through off-hours trading is allowed only when the stocks are to be acquired from the government or the government issued a guidance/recommendation followed by the authorization by the FSC. In this case, the price range to acquire will be the same as off-hours block trading with the exception, where there is no such price range or daily price limits, for the cases of acquisition from the KDIC or acquisition under the authorization by the FSC. Although the quantity restriction is not applied for the treasury stock trading through the off-hours block trading, the application should be filed one day prior to the trading.
In the meantime, when a trustee wants to have trading under a trust agreement, it must open a separate account per each trust agreement. Other requirements such as the range of quotations are the same as general treasury stock trading by listed corporations. However, to prevent frequent treasury stock trading, re-disposal (re-acquisition) of the acquired (disposed) stocks within one month is not allowed and the daily order quantity is limited up to 1% of the total shares issued.