Korea Freeboard Market

Korea Freeboard Market (often simply called Freeboard) is a South Korean over-the-counter (OTC) equity market operated under the framework of the Korea Exchange (KRX). It was created to provide a trading venue for companies that are neither listed on the main stock market division nor on the KOSDAQ market division of KRX. In other words, Freeboard serves as a third-tier or peripheral market where shares of smaller, unlisted, or otherwise non-mainboard companies can be quoted and traded. The market is part of South Korea's broader capital markets infrastructure, which includes the KOSPI (main board), KOSDAQ (technology-focused board), and KONEX (a market for early-stage SMEs). Freeboard is distinct from these in that it is not a formal listing division but rather an OTC platform. It allows investors to trade securities of companies that do not meet the listing requirements of the main boards, thereby improving liquidity and price discovery for such shares. As an OTC market, Freeboard typically operates with less stringent disclosure and listing requirements than the main exchanges. It is used by companies that may be too small, too new, or otherwise ineligible for KOSPI or KOSDAQ listing. The market is regulated by South Korean financial authorities, and trading is conducted through licensed securities firms. The exact launch date and current operational status of Freeboard are not specified in the available evidence. However, it is referenced in official Korean financial documentation, including materials from the Korea Securities Dealers Association (KSDA), which suggests it is an established part of the country's OTC trading landscape. The market's name, "Freeboard," implies a more flexible or free-form trading environment compared to the formal exchanges. In summary, Korea Freeboard Market is a specialized OTC equity market in South Korea designed for companies outside the main KRX listing divisions. It plays a role in broadening access to capital and facilitating trading for a segment of the market that might otherwise lack a public trading venue.

The Korea Freeboard Market was established as part of South Korea's efforts to develop a multi-tiered capital market system. While the exact founding date is not provided in the available evidence, the market is referenced in official documentation from the Korea Securities Dealers Association (KSDA), indicating its recognition within the Korean financial industry. Historically, South Korea's equity market has been dominated by the Korea Exchange (KRX), which operates the KOSPI and KOSDAQ divisions. However, many companies do not meet the listing criteria for these boards. To address this gap, the Freeboard was created as an OTC market where such companies could have their shares traded. This aligns with global trends of establishing alternative trading venues for SMEs and unlisted companies. The Freeboard is not a formal listing division but rather an OTC platform. It allows trading in securities of companies that are neither on the stock market division nor on the KOSDAQ market division of KRX. This makes it similar in concept to other OTC markets like the US OTC Bulletin Board or Pink Sheets, though with a Korean regulatory framework. Over time, the Korean government and financial regulators have introduced various measures to support SME financing and improve market access. The Freeboard is one such initiative. It is regulated by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), and trading is conducted through licensed securities firms. The market's operations are closely tied to the Korea Securities Dealers Association (KSDA), which provides an English-language overview of OTC trading on its website. This suggests that the Freeboard is part of the broader OTC market infrastructure managed or overseen by KSDA. As of the available evidence, the Freeboard remains an active, albeit niche, part of South Korea's capital markets. It continues to serve companies that seek a public trading venue without the full requirements of a main board listing.

A peripheral OTC equity market for companies outside the main KRX listing divisions.

• OTC equity trading

  Trading of shares of companies not listed on KOSPI or KOSDAQ.

1. 1Korea Freeboard Market - Wikidatawikidata.org
2. 2KSDA OTC Overviewksda.or.kr