The nation’s top financial regulator is adding momentum to its plan to remodel the stock operator into a holding company system, a move that prompted backlash from the labor union.

The Financial Services Commission and the Korea Exchange summoned board members of local stock companies to a shareholders meeting Tuesday morning, seeking their opinion on the holding company conversion.

“We intend to hear our stockholders’ opinions in an open-minded manner,” said KRX chief Choi Kyung-soo, upon entering the closed-door meeting.

(FSC)

He also added that nothing has been decided for sure, when asked about the adoption of the holding company system.

The FSC is expected to finalize the KRX restructuring plan next week.

“The key content is to reorganize KRX into a holding company,” said FSC chairman Yim Jong-yong last week during a parliamentary debate session on reinforcing the bourse’s competitiveness.

According to Yim’s blueprint, a new holding company will be established to govern the three stock market sectors ― the benchmark KOSPI, secondary KOSDAQ and the low-bracket KONEX.

If so, KOSDAQ, which is currently much dependent on the main KOSPI, will be operated as an independent main board and file for an initial public offering.

It is, however, the claim of the KRX labor union that the rash conversion into a holding company may only damage the market order.

“Financial authorities had considered the holding company system in 2003 but turned it down, citing inefficiency,” the union said through a statement.

As a result, the FSC merged the stock exchange with the tech-laden KOSDAQ and futures market in 2005.

“Under the current system, the three markets may save costs by sharing a single channel for their information technology, business management, as well as clearing processes,” the union said.

“If the financially struggling KOSDAQ were to be separated into an independent legal body, it would either fall into deficit or increase its transaction fees.”

By Bae Hyun-jung (tellme@heraldcorp.com)