DEFINITION of 'Korea Stock Exchange (KSC) .KS'

The Korea Stock Exchange is a division of the much larger Korea Exchange that includes a stock exchange, futures market, and stock market. Prior to joining the Korea Exchange, the Korea Stock Exchange operated independently since its start in 1956. Some of the exchange's milestones include launching the Stock Index Futures Market in 1996 and the Stock Index Options Market in 1997, as well as the adoption of electronic trading in 1988, warrant trading in 2000, and equity options and exchange traded funds (ETF) in 2002. Today, investors can trade various instruments on the exchange like stocks, bonds, ETFs, and real estate investment trusts (REIT). 

BREAKING DOWN 'Korea Stock Exchange (KSC) .KS'

The Korea Stock Exchange was integrated into the Korea Exchange after a 2005 merger that brought together the Korea Stock Exchange, the KOSDAQ, and the Korea Futures Exchange. It is one of the largest exchanges found in Asia. As of 2018, the exchange had listed 2194 companies with a combined market capitalization of $1.9 trillion. Normal trading sessions look the same as other major stock markets around the world. Trading opens at 9:00 AM and closes at 3:30 in the afternoon. The market is open all days of the week except Saturday, Sunday and holidays determined well in advance. 

The Korea Composite Stock Price Index (KOSPI) is a gauge of health for the stock market like the S&P 500 is in the United States. It contains all common stocks traded in the stock market division of the Korea Exchange. KOSPI was introduced in 1983 with a base value of $100 and today the index trades around $2,500. It is calculated on market capitalization like other major indexes and boasts daily trading volume in excess of multiple hundreds of million shares. As of 2017, the biggest holdings in the index included tech giant Samsung, automotive maker Hyundai Motors, and chemical company LG Chem.

Several offshoots of the KOSPI track specific sectors, factor strategies, and market capitalizations. For example, the KOSPI 200 Index consists of 200 large companies in the stock market division. 

Trading the Korea Stock Exchange

US investors seeking exposure to the Korean market can gain it through exchange traded funds. The iShares MSCI South Korea Index listed under the ticker symbol EWY tracks the investment results of an index on the South Korean market. This targeted access to Korean stocks extends to large and mid-sized companies. Some of the greatest risks to the Korea Stock Exchange include geopolitical tensions with its neighbor to the north and potential setbacks in technology, financials or automakers – three of the largest sectors in Korea.

RELATED TERMS
  1. Primary Exchange

    A primary exchange like the New York Stock Exchange facilitates ...
  2. Equity Market

    An equity market is a market in which shares are issued and traded, ...
  3. Stock Market

    The stock market consists of the exchanges or OTC markets in ...
  4. Futures Exchange

    A futures exchange is a central marketplace, physical or electronic, ...
  5. Overnight Trading

    Overnight trading refers to trades that are placed after an exchange’s ...
  6. National Stock Exchange of India ...

    The National Stock Exchange is India's largest financial market ...
Related Articles
  1. Insights

    4 Economic Challenges South Korea Faces in 2016

    Learn about the economic challenges South Korea faces in 2016. Discover the impacts of currency fluctuations, the Chinese economy and Fed rate cuts.
  2. Tech

    Why North Korea Hates The U.S.

    Here are the key reasons why North Korea hates the US and why their relations are so sour.
  3. Investing

    The Top 3 ETFs to Track the KOSPI for 2016

    Learn about the best available exchange-traded funds that offer investors exposure to South Korean equities and that track the KOSPI 200 Index.
  4. Investing

    Emerging Markets: Analyzing South Korea's GDP

    South Korea's transition from a war-devastated poor country to an affluent developed nation presents a phenomenal growth story.
  5. Tech

    Why South Korean Bitcoin Price Is $1,000 Over Global Price

    Surging trade volume among South Korean Bitcoin exchanges has pushed prices $1000 higher than the global average.
  6. Investing

    Following Buffett Into South Korea

    At Berkshire's annual meeting, Warren Buffett highlighted South Korea as an attractive market. We examine some key players.
  7. Retirement

    Retire In South Korea With $200,000 Of Savings?

    In modern South Korea, the cost-of-living differential may not be so good as elsewhere in SE Asia, but with a large enough nest egg, you can be okay.
  8. Tech

    Why Is South Korea So Important to Bitcoin Prices?

    South Korea is one of the largest markets for bitcoin traders worldwide, hence, its outsized impact on BTC prices.
  9. Tech

    After China, South Korea Bans ICOs

    South Korea has temporarily prohibited all forms of initial coin offerings and is considering a permanent ban.
  10. Tech

    South Korea Exchanges Move to Mainstream Cryptocurrency Use

    South Korean exchange Bithumb has inked partnerships with businesses to promote cryptocurrency adoption.
RELATED FAQS
  1. What are all of the securities markets in the U.S.A?

    Learn about the major and somewhat lesser-known U.S. financial securities markets. Read Answer >>
  2. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
  3. What does it mean when my broker says that shares are for auction?

    An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same ... Read Answer >>
  4. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
  5. How can I find out which stocks also trade as options?

    The trading of options has become increasingly popular among retail investors as they become aware of the many different ... Read Answer >>
Hot Definitions
  1. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  2. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  3. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  4. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  5. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  6. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Trading Center