The over-the-counter market is also popular due to the stock investment craze… Close to 10 billion won per day

With the popularity of stock investment, such as the KOSPI exceeding the 3000 line, funds flowing into the Korean OTC stock market (K-OTC), which are unlisted stock trading markets, are also increasing. According to the Financial Investment Association on the 12th, the average daily trading value of K-OTC for the month of January was 9,995 million won. If it exceeds 10 billion won, it is the first time ever. This is more than double the level of January 2019 (4.48 billion won), and a 53.8% increase from last December (6.5 billion won). K-OTC is one of the domestic stock markets after KOSPI, KOSDAQ, and KONEX. This is where unlisted companies can trade stocks in the institutional market. Currently, the number of stocks trading on K-OTC is 137, the same as at the end of 2019. However, as of the end of January, the market capitalization was 18,200 trillion won, an increase of nearly 4 trillion won from the end of 2019 (14.27 trillion won). The average daily transaction value for the past year was 5.15 billion won, an increase of 1.12 billion won (27.9%) from 2019 (4.30 billion won). In particular, the annual transaction value of last year recorded 1.26 trillion won, exceeding 1 trillion won for the first time, and interest in K-OTC is increasing. The OTC stock market has the advantage of being able to lead to large profits in the future if it is invested in a company that is likely to be listed previously or has a higher corporate value than the stock price. On the contrary, trading is not active compared to KOSPI or KOSDAQ, so there is a disadvantage that funds can be tied up like bad stock after purchasing unlisted stocks with low corporate value. Last year, as SK Biopharmaceuticals and Kakao Games recorded high subscription competition, the demand for listing expectations for unlisted stocks also increased. K-OTC is currently trading not only SK E&C and LS Cable, but also Aribio, which is undergoing clinical trials for dementia treatment in the United States, and Ohsang Healthcare, a diagnostic kit exporter for novel coronavirus infection (Corona 19). In addition, in March and November last year, Seoul Viosys and A+ Asset, which were traded at K-OTC, were relocated to KOSDAQ and KOSPI respectively. Reporter Beomsoo Kim [email protected]

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