The Korea Exchange (“KRX”), a leading regional equities and derivatives exchange, announced that it has secured a preliminary agreement with the Government of Laos to set up a stock exchange in the country’s capital of Vientiane.
The agreement will see the KRX take a 49 percent stake in the Laos stock exchange, which will be a joint venture between it and the Bank of Laos (BOL). As the technical and operational partner, KRX will provide its know-how in setting up the technical and regulatory infrastructure for an advanced international exchange.
The KRX has a strong track record in exporting its IT systems, both the Vietnam and Malaysian stock exchanges use KRX technology and it is also working on the establishment of a Cambodian exchange, which is due to open in 2009.
The decision to go ahead with the agreement came during a two-day conference in Vientiane in mid-November attended by Deputy Prime Minister Somsavat Lengsavad and Finance Minister Somdy Douangdy. Lee Chang Ho, President and CFO of the KRX Management Strategy Division, and BOL governor Phouphet Khamphounvong finalized the agreement.
Following the contract signing in February 2009, the joint venture will oversee the construction of a headquarters for the stock market and the formation of a committee to develop the regulatory framework.
The new exchange is scheduled to open by October 2010.
