What is a market-making member ?
It refers to a market maker that provides liquidity to the general bonds market to help general investors trade bonds conveniently. The market-making member provides liquidity by placing quotations with prices (yields) and quantity continuously to trade the relative bonds.
Qualification of market-making member
A member licensed for investment dealing business on debt securities
Designation and termination of designation of market-making member

(Designation) A member who intends to be a market-making member should file an application for designation by the deadline set by the Exchange each quarter.

Number of market-making members as of June 2017 : 24

(Termination of designation) The designation is terminated by the application of the member or in case where the member is found to have been under disciplinary actions by the Market Oversight Committee because of an unfair trading in relation with the market-making activity.

Method of market-making
Market makers are required to place both-sided quotations amounting from KRW 100 mil. to 10 bil. within 0.15%p of bid/offer spread(0.1%p in case of government bonds, 0.2%p in case of corporate bonds less than AA-rated) continuously for 2/3 or longer of the daily trading hours.
< Basic Market-Making Requirements >
Number of issues
per day
Quotation Amount Market-Making Time Spread Market-Making Days
Government Bonds Corporate bonds less than AA-rated Other Bonds
15 issues or more Two-way KRW 100 mil. ~ 10 bil. 2/3 or more of daily
trading hours
0.1%p 0.2%p 0.15%p 2/3 or more of the total trading days
subject to evaluation of
market-making performance
Benefits for market-making members
Exchange membership fees are exempted for the transactions by the market-making activities. In addition, the Exchange pays for the market-making activities according to the performances.