KRX opens stock exchange in Laos

KRX opens stock exchange in Laos

Laotian Deputy Prime Minister Somsavat Lengsavad cuts the red tape with Korea Exchange CEO Kim Bong-soo, fourth from left, at the opening ceremony for the Laos Securities Exchange in Vientiane, Laos, Sunday. / Courtesy of Korea Exchange By Kim Da-ye The Korea Exchange (KRX) and the Laotian government launched Sunday a stock exchange in the capital of Laos for which they cooperated in the last three years to build, the Seoul bourse announced. The Laos Securities Exchange (LSX) is the world’s first successful collaboration between a foreign stock exchange and the government of an emerging market, the KRX claimed. It will officially begin trading of financial instruments in January next year. The Korean stock exchange owns a 49 percent share of the Laotian counterpart for its investment in the information technology (IT) system and training local officials for operating a bourse. Two of the five board members including the vice chairman and the auditor are from the KRX, representing much of its participation in the management. Laos has a 51 percent share of the exchange for having provided the land and constructed the building. The KRX signed a memorandum of understanding with the Laos’ central bank back in September 2007 to set up a stock market. Since then, it has helped train officials for the stock market operation and supervision. It recently finished installing the IT system. The Seoul bourse is also working with the Cambodian government on launching a stock exchange in the country. It said in a statement, “When both stock exchanges in Los and Cambodia opens by the second half of next year, three countries in the Indochinese peninsula including Vietnam will be using the Korean stock exchange system.” The KRX said it hopes to expand its business to other neighboring countries, earning extra revenue mainly by exporting its IT system. It also expects that building a bourse in Laos should help domestic financial firms approach the market. The opening ceremony was held on Oct. 10, Sunday at 10:10 a.m because number 10 is Laotians’ favorite number. It was attended by some 200 Laotian officials including Deputy Prime Minister Thongloun Sisoulith and the chairman of the central bank and thirty Korean officials including KRX CEO Kim Bong-soo and Korean ambassador to Laos Lee Gun-tae.