On January 9, 2018, the Korea Exchange (“KRX”) announced expansion of its market making operation aimed at improving price discovery and liquidity in the Korean stock market. 

As part of this expansion, the KRX increased the number of stocks designated for market making from 82 to 500 stocks.  The KRX also renewed its existing market maker agreements with seven domestic brokerage firms while entering into new market maker agreements with three global investment banks (i.e., SG Securities Korea, CLSA Securities Korea, and Goldman Sachs Asia LLC, Seoul Branch). 

It is widely anticipated that this new measure will significantly improve liquidity in the Korean stock market.  Only those firms which are clearing members of the KRX for equity securities may qualify as a market maker.