Dunamu, an operator of global cryptocurrency exchange Upbit, announced Monday that it plans to launch a comprehensive over-the-counter trading platform that deals with all types of unlisted stocks.

According to the Upbit operator, it will jointly launch the platform, which will be available in the form of an app, with local brokerage Samsung Securities and big data analytics company Deep Search by the end of the month. 

The goal of this collaborative effort is to address the problem of “information asymmetry” -- that is, the imbalance of knowledge between buyers and sellers of unlisted stocks -- as well as to increase the security of transactions and lower their cost to investors.

Most investors in unlisted stocks pay high commission fees to brokers, due to the high-risk nature of the OTC market.

Dunamu will provide the necessary disclosures and corporate information based on its experience operating its existing stock trading app, “Stock Plus,” while Samsung Securities will ensure safe trading.

Deep Search will contribute by discovering and analyzing new firms with its analytics system, based on news and records concerning corporate information and patents going back 30 years.

Besides providing a rare source of organized data about unlisted securities, including its issuers’ financial health and market value, it will act as means of communication between buyers and sellers, allowing them to confirm transactions and negotiate share prices, the firm said.

The upcoming launch will immediately allow 4,000 firms to promote their unlisted shares on the platform.

“Most unlisted stock transactions in South Korea are made via online community bulletin boards and offline trades, leading to uncertainties surrounding the parties’ identities and the information needed in the investment,” Lim Ji-hoon, Dunamu’s chief strategy officer, said in a statement.

“We will make efforts to provide an innovational investment for all unlisted stock investors and sellers by continuing the development of the platform based on our experience of operating Stock Plus,” he added.

Koreans’ interest in unlisted shares has grown in recent years, with investors seeking to diversify their portfolios amid a slow stock market. The accumulated transaction volume of the nation’s most popular OTC trading market, K-OTC, surpassed the 2 trillion won ($1.7 billion) mark as of Sept. 20, according to market operator the Korea Financial Investment Association.

By Jung Min-kyung (mkjung@heraldcorp.com)