Chairman of Korea Exchange, Lee Jung-hwan

Efforts by Korea Exchange to shake off the nation's closed-market image are paying off, according to the head of the stock market operator yesterday.

Lee Jung-hwan, chairman of Korea Exchange, said 20 overseas firms have made bids to be listed on the Kospi and Kosdaq. The number of foreign listed companies will rise to around 50 at the end of next year, he said.

"Currently, there are 20 foreign firms - 15 from China, three from the United States and two from Japan - bidding for a listing on the local stock market," Lee said during the opening ceremony of Korea Exchange's Beijing office, according to pool reports. He said the 20 companies have signed deals with Korean brokerages to arrange the listings.

"We will try to attract more companies overseas so that 50 or so foreign companies will be listed in Korea by the end of next year," Lee said.

3NOD Digital Group,a Chinese digital audio producer, became the first foreign listed firm in Korea when it went public on the secondary Kosdaq in August 2007. Two other Chinese firms - Huafeng Textile International Group and Cowell e Holdings Incorporated - followed 3NOD into Korea, listing shares on the Kospi in November 2007 and on the Kosdaq in January, respectively.

Lee said around 3,000 Chinese companies are hoping to list their shares overseas, and that the Korea Exchange's Beijing office will facilitate listings by providing necessary information.

According to Korea Exchange, it is the fourth foreign stock market operator to open an office in Beijing, following the NYSE and Nasdaq, both from the United States, and Japan's Tokyo Stock Exchange.