Any individuals who intend to buy the KONEX-listed securities are required to deposit KRW 30 million or more as a basic deposit as it needs to limit market participants to investors with certain degree of risk taking ability because the KONEX market is specialized in the early-stage SMEs.
However, the following persons who are recognized as having enough risk taking ability or investment professionalism for SMEs are exempted from making basic deposits:
- Professional investors stipulated in the Financial Investment Services and Capital Markets Act
- Collective investment vehicles (including startup investment association) established or set up pursuant to the laws noted in [§6(1)] of the Enforcement Decree of the Financial Investment Services and Capital Markets Act
- Small and medium business start-up investment companies pursuant to subparagraph 10 of Article 2 of the Act on the Promotion of Venture Investment
- Associations of individual investors pursuant to subparagraph 8 of Article 2 of the Act on the Promotion of Venture Investment
- Qualified angel investors recognized by the Korea Angel Investment Association
- Investment discretionary assets classified as high-yield fund applied by separate taxation (wrap account, investment discretionary account, etc.)
- A person who entrusts trade through a customized asset management account (wrap account) according to Article 4-77 Subparagraph 7 of the Financial Investment Business Regulation
- Employee stock ownership association according to Article 2 Subparagraph 4 of the Framework Act on Labor Welfare
- Start-up planners (accelerators) pursuant to subparagraph 9 of Article 2 of the Act on the Promotion of Venture Investment
Also, the basic deposit regulations are not applied to Small Investment Account, which was introduced on July 27, 2015.
Basic deposit system is applied only to the case of purchasing the stocks liste on the KONEX market; in the case of selling KONEX-listed stocks previously held, it can be sold any time regardless of the basic deposit.
| KONEX Market 1) | ELW Market 2) | ||||||
|---|---|---|---|---|---|---|---|
| buy order | Sell order | Cash/securities withdrawal |
buy order | Sell order | Cash/securities withdrawal |
||
| Depositing more than the basic deposit | If not held in KONEX/ELW |
O | - | Possible to withdraw the total amount | O | - | Possible to withdraw the total amount |
| If held in KONEX/ELW |
O | O | Possible to withdraw the total amount | O | O | Possible to withdraw the amount exceeding the basic deposit only | |
| Depositing less than the basic deposit | If not held in KONEX/ELW |
X | - | Possible to withdraw the total amount | X | - | Possible to withdraw the total amount |
| If held in KONEX/ELW |
X | O | Possible to withdraw the total amount | O | O | Impossible to withdraw | |
- 1)
- A person who intends to buy the KONEX-listed stocks shall deposit at least KRW 30 million. (excluding the case of the investment account only for the KONEX market)
- 2)
- A person who intends to buy the ELWs with no balance in the ELW account shall deposit at least KRW 15 million.