Listing
Examination of ETF(Exchange Traded Funds) Listing
Listing Criteria (Article 42-2 of the Securities Market Listing Regulation)
| Category | Domestic ETFs | Foreign ETFs | |
|---|---|---|---|
| Size | Principal amount of trust | At least KRW 10 billion | At least KRW 10 billion (based on domestic circulation, exchange rate at the time of listing) |
| No. of beneficiary certificates | At least 100,000 units | At least 100,000 units (based on domestic circulation, exchange rate at the point of listing) |
|
| Liquidity | No. of authorized participants | At least 2 companies | N/A (Sales agent in Korea acts as mediator between investors and APs in home country) |
| No. of Liquidity Provider | At least 1 company | '' | |
| Agreement on use of underlying index | necessary | '' | |
| Requisite of the index | index that comprehensively represent the price level of a group of constituent issues | '' | |
| Requisite of the asset composition / Operations |
Case where the conversion of payment money into the asset equivalent to creation unit is possible i) Case of stocks: asset must include over 95% of constituent stocks of underlying index on the basis of market value and over 50% of constituent stocks of underlying index on the basis of number of issues ii) assets other than stocks: Asset must include over 95% of issues that moves along with the fluctuation of price or index Case where the conversion of payment money into the asset equivalent to creation unit is difficult i) Method of linking up with the price or index of tracking asset. Weight of assets other than the index constituents and asset composition of derivatives ii) value of OTC derivatives: less than 10% of total capitalization iii) appropriate internal control, including disclosure of risk and risk management procedures iv) Credit rating of counterparty: Higher than (① Korean Counterparty : Korea Investor Service : A, National Information & Credit Evaluation : A, Korea Ratings : A ② Foreign counterparty : S&P : A, Moody's : A2, Fitch : A) |
'' | |
| Listings on foreign exchange | - | prerequisite | |
| Registration requirement for foreign collective investment schemes | - | Required to register with FSC for sale in Korea | |
Documents to be submitted
- ETF listing application
- Prospectus
- A copy of trust agreement
- Sample certificate of concerned ETF or uniform securities issuance certificate
- Customer account book entry certificate
- Documentary proof on payment of trust amount, etc.
- A copy of ETF issuance approval
- Operational plan for ETF asset
- Document confirming the transfer agent service company of the ETF
- A copy of the agreement on use of underlying index
- copy of the agreement with the authorized participants
Listing Fees (Securities Market Listing Regulation: Article 50 & Annex 2, the Enforcement Rule)
| Listing amount (in billion KRW) | Listing fees (in thousand KRW) |
|---|---|
| ＞3 and ≤ 10 | (1,200 + 0.03% of the amount over 3,000,000) x 1/3 |
| ＞10 and ≤ 20 | (3,300 + 0.02% of the amount over 10,000,000) x 1/3 |
| ＞20 and ≤ 50 | (5,300 + 0.01% of the amount over 20,000,000) x 1/3 |
| ＞50 and ≤ 100 | (8,300 + 0.005% of the amount over 50,000,000) x 1/3 |
| ＞100 and ≤ 500 | (10,800 + 0.004% of the amount over 100,000,000) x 1/3 |
| ＞500 and ≤ 1,000 | (26,800 + 0.003% of the amount over 500,000,000) x 1/3 |
| ＞1,000 | (41,800 + 0.001% of the amount over 1,000,000,000) x 1/3 |
- Contents Manager :
- KOSPI Market Division/Product Listing/Jimin Yoon(02-3774-9366)
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