A growing number of fintech companies are scurrying to roll out over-the-counter (OTC) trading in South Korea to meet a rush of demand from 20- and 30-something Koreans looking for jackpots from unlisted stocks amid stagnation in the main bourses.

According to financial investment industry sources, nine fintech companies have recently filed applications with the Financial Services Commission to obtain the permit to offer OTC trading service through the category of an innovative financial service provider.

In April last year, OTC trading platforms PSX and Dunamu obtained permit from the financial authority to launch exchange platforms for unlisted stocks.

OTC trading volume has surged from a rush of migration of young Koreans frustrated by the stagnant stock market in search of IPO aspirants.

The daily turnover of Korea’s OTC market dubbed K-OTC in the first half of this year came to 6.47 billion won ($5.5 million), surging from 1.09 billion won in 2017, according to data from the Korea Financial Investment Association (KOFIA). The number of monthly active users tripled to 290,000 as of end-September from the beginning of the year.

“The cumulative transaction volume so far this year since the market opening totaled 4.95 trillion won,” said KOFIA official Lee Hwan-tae.

The 20 to 30 age groups are behind nearly half of those owning IPO aspirants Viva Republica operating money transfer app Toss, Yanolja, Market Kurly and Oasis.

By Moon Ji-woong and Lee Soo-min

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