K-OTC Market: Who Qualifies and What You Get
Learn about the K-OTC Market for trading unlisted stocks and accessing pre-IPO opportunities in South Korea.
The K-OTC Market is a platform designed for trading stocks of companies that are not listed on the major public exchanges.
Who it's for
This market is designed for investors who are interested in buying and selling shares of unlisted companies.
What you get
By using this market, you gain access to pre-IPO stocks, which are shares in companies that have not yet gone through the process of an initial public offering.
What it costs you
Investing in this market carries a higher risk profile compared to traditional public exchanges, meaning there is a greater chance of losing your investment.
The catch to know
Liquidity is significantly lower than the KOSPI. This means it may be difficult to sell your shares quickly because there are fewer buyers and sellers active in the market at any given time.
How to apply
- Research the specific unlisted companies you wish to invest in.
- Ensure you have a brokerage account capable of trading over-the-counter stocks.
- Review the risk levels associated with unlisted securities.