The Cambodia Securities Exchange (“CSX”) established by a joint venture agreement between the Government of Cambodia and Korea Exchange (“KRX”) was officially inaugurated in Pnom Penh on July 11, 2011.
The CSX is the second exchange that the KRX established as a form of Joint Venture since the KRX started to assist establishment of securities markets in the emerging economies, following the incorporation of the Lao Securities Exchange (“LSX”) as a Joint Venture in October 2010.
By contributing IT system, the KRX holds 45% of equity in CSX and co-manages the CSX by assuming the Vice Chairman, auditor, etc. The Government of Cambodia holds 55% of equity by contributing the land and buildings.
Since signing of MOU with the Ministry of Economy and Finance of Cambodia in November 2006, the KRX has organized and conducted various training courses to secure the availability of skilled core workforce and provided the advisory services necessary for the enactment and formulation of securities laws and regulations and development of IT system. The CSX incorporated after 4 years and 7 months of hard work will be open for trading in December 2011.
Once the CSX is open for trading late 2011 after LSX in Jan. 2011, the KRX will provide the Korean style securities exchange for three Indochinese countries including Vietnam. It is expected that the supply of KRX-model securities exchange to the Indochinese countries will help the Korean financial companies’ entry into Indochina and this, in turn, will help Korea position itself as the financial hub of East Asia.
