Over the past year, the market capitalization of K-OTC, a Korean over-the-counter stock market managed by the Financial Investment Association, increased by 30%. It has been consistently maintained at the level of 22 trillion won ($18.5 billion).
On the 20th, the Financial Investment Association reported that the K-OTC market had a market capitalization of 22.9 trillion won as of the 17th. The increase is about 29.6% from the end of last year ($14.6 billion).
The market capitalization has gone over 22 trillion won several times in the past. K-OTC’s market capitalization was estimated at 22.04 trillion won on June 7, exceeding 22 trillion won. Afterwards, it remained at 22 trillion won for the month and often stayed in the 21 trillion won range from July to August.
The average daily trading value is also increasing year after year. From 2,768.46 million won in 2018, it rose to 4,025.87 million won in 2019 and to 5,147.55 million won in 2020. During the first half of this year, it exceeded 6,466.42 million won.
Currently, there are 140 companies listed on K-OTC. There have been 11 new companies entering the market this year alone.
Research indicates that small and medium-sized venture firms are driving the growth of the K-OTC market. These companies raised 3,852 billion won through capital increases and other means in June last year.
Furthermore, investors who have attended successive IPOs in recent years are more likely to invest in promising companies in advance. As a result of the strong competition in publicly traded stocks, they do not receive the amount they intended, so they turn to unlisted stocks with the intention of investing in advance before the listing.