A company meeting at least one base requirement in profit, estimated market value, and net capital would be able to go public on the Kosdaq market as a part of further government steps to promote Korea’s second bourse, top financial chief said Tuesday.

Korea will remove bottom line and paid-equity requirements that got in the way of public offerings of venture enterprise, said Financial Services Commission (FSC) chairman Choi Jong-ku during a meeting with securities companies.

The government on Thursday is due to release a new package of actions to stimulate the secondary bourse laden with technology and bio companies. Kosdaq last year benefited from government interest and promise for promotion and ended the year 2017 26.4 percent higher from a year ago. Kosdaq continues to rally towards a new milestone. The index ended Tuesday 1.1 percent lower at 829.99.

A company is required to meet guidelines in three areas - profits, market capitalization and paid-in capital - to be eligible for IPO, but rules will be fixed to make more exceptions to boost membership in the secondary market, Choi said.

Authorities will at the same time toughen surveillance to oust ailing members. State entities will jointly set up a 300 billion won ($281 million) fund to invest into undervalued Kosdaq-listed companies to draw more active participation from institutional investors.

The regulator also plans to develop a new stock market index combining the Kospi and Kosdaq to boost the release of new exchange-traded funds and other marketable securities based on the new index.

By Jin Young-tae and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]