Korea Capital Market Institute

Program

Despite its short history, Korea’s derivatives market has achieved unprecedented growth. But such impressive growth is not without side effects, e.g., speculation, the market’s excessive size relative to the economy, etc. Notably, market scandals related to the option expiration day and ELW aroused a controversy and undermined investor confidence. To address this, investor protection regulation has been toughened. 

Despite the controversy, no one can deny that a derivative market is an essential element to advanced capital markets. Since the market lost confidence and regulation was strengthened, trading in Korea’s derivatives market has fallen dramatically. Mixed opinions exist regarding this: Some view this as market normalization, while others see this as a market contraction. This necessitates more than ever the discussion about the future of Korea’s derivatives market. 

Korea Capital Market Institute will host a policy debate titled “Korea’s Derivatives Market: Diagnosis and Future Development”. In this debate, participants will diagnose the past and present of Korea’s derivatives market, and propose the direction for future development based on analyses.