Futures market might move to Pusan

The government has proposed to transfer the futures market, currently part of the Korea Stock Exchange, to the Pusan Futures Market in 2004. However, the government's proposal has met with a fierce backlash from the those in the KSE and others in the securities industry.

"Following a comprehensive review of legalities and the measure to promote the growth of the Pusan Futures Market Exchange, and through half a year of debate with the City of Pusan officials and those in the securities field, we have decided to transfer the futures market (KOSPI 200 Index) to Pusan after about three years and modify the necessary laws for the purpose," an official at the Ministry of Finance and Economy said Thursday.

The Ministry of Finance and Economy has decided to modify the current futures market laws to make it possible for the Kosdaq futures (Kosdaq 50 Index) to be traded through the Pusan futures market exchange starting next year.

"The government's proposal to transfer the futures market to Pusan has nothing to do with economic theory," an official at the stock exchange said in response to the government's proposal. "The government has done so as a ploy for the upcoming presidential election and has complicated the matters."