Korean stock market glossary
82 terms from valuation metrics to Korean disclosure and trading rules, each with what to watch for.
A dictionary for the words that come up in Korean filings and market news. Each entry explains what the term means, what to watch for when reading the number, and where the actual figures appear on this site. Rule-based figures such as price limits and circuit breakers are current as of September 2026. For step-by-step explanations see the guides.
Market basics
- KOSPIKorea's main stock market board and the benchmark index that tracks all companies listed on it.
- KOSDAQKorea Exchange's growth market, home to many biotech, IT, chip-equipment and battery-materials companies.
- Market capitalizationShare price multiplied by shares outstanding — the price the market puts on a whole company.
- Daily price limitKorean stocks can move at most ±30% from the previous close in a single trading day.
- Preferred stock (우선주)Non-voting shares that receive dividends first, usually at a slightly higher rate; the ticker name ends with 우.
- Tick sizeThe smallest price step for orders on the Korea Exchange, from KRW 1 to KRW 1,000 depending on price.
- Trading hours and call auctionsThe KRX regular session runs 09:00–15:30 KST, with call auctions at the open and the close.
- After-hours tradingTrading outside the regular session. Since September 14, 2026, the Korea Exchange runs a real-time after-hours market from 4:00 to 8:00 p.m. KST.
- Settlement (T+2)Korean stock trades settle two business days after the trade date.
- ADR (American Depositary Receipt)A certificate that lets US investors trade a foreign company's shares in dollars on a US exchange.
Valuation metrics
- P/E ratioShare price divided by earnings per share — how expensive a stock is relative to its profit.
- P/B ratioShare price divided by book value per share; below 1x means trading under accounting net assets.
- ROEHow much profit a company earns on shareholders' equity in a year.
- EPSNet income divided by shares outstanding — the profit attributable to one share.
- BPSNet assets divided by shares outstanding — the accounting value behind one share.
- Dividend yieldAnnual dividend per share divided by the share price — the cash return from dividends.
- Payout ratio (배당성향)The share of a year's net profit that a company pays out as cash dividends.
- EV/EBITDAEnterprise value divided by EBITDA — how the whole company's price compares with its operating cash generation.
- Operating marginOperating profit as a share of revenue — what the core business keeps from each sale.
Disclosures & corporate actions
- Registration statement (증권신고서)The filing a Korean company makes before a public offering — it carries the price, dates, underwriters and use of proceeds.
- Preliminary listing review (상장예비심사)The Korea Exchange screening a company must pass before it can run an IPO.
- Stock options (주식매수선택권)Rights for staff to buy company shares at a set price; exercising them adds shares and dilutes existing holders.
- Rights offeringA company issues new shares for cash to raise capital (유상증자).
- Bonus issueNew shares handed to existing shareholders for free by moving retained surplus into capital (무상증자).
- Ex-rights dateThe day a stock trades without the right to new shares, when its base price is adjusted down.
- Ex-dividend dateThe first trading day on which buyers no longer receive the upcoming dividend.
- Stock splitDividing each share into several shares: more shares, lower price, same company value.
- Capital reductionReducing a company's share capital, usually by cutting the number of shares (감자).
- Share buyback and cancellationA company buying back its own shares, and cancelling them to reduce share count.
- Convertible bond (CB)A corporate bond that can be converted into new shares at a preset price after a set period.
- Bond with warrant (BW)A corporate bond with an attached warrant to buy new shares at a preset price.
- RefixingA clause that lowers the conversion or exercise price of CBs and BWs when the share price falls.
- Five percent ruleAnyone who acquires 5% or more of a listed company, or changes that stake by 1%+, must disclose it.
- Preliminary earningsA filing announcing estimated revenue, operating profit and net income before results are finalized.
- Earnings surprise and shockResults well above consensus are a surprise; results well below are a shock.
- IPO shares (공모주)Shares sold to the public when a private Korean company lists for the first time, allocated through subscriptions.
- Book-building (수요예측)Before pricing an IPO, underwriters collect the prices and quantities institutions are willing to buy at.
- Equal allocation (균등배정)At least half of the retail tranche in a Korean IPO is split equally among everyone who subscribes the minimum.
- Lock-up (의무보유확약·보호예수)A pledge or rule not to sell shares for a set period; supply can hit the market when it ends.
- Tradable shares at listing (유통 가능 물량)The share of shares that can actually trade on the first day, as a percentage of shares to be listed.
- Insider ownership report (임원·주요주주 소유 보고)A DART filing made when an officer or a 10%+ shareholder of a Korean listed company changes their shareholding.
- Third-party allotment (제3자배정 유상증자)A Korean rights issue in which new shares go to specific investors chosen by the company rather than to existing shareholders.
- Exchangeable bond (교환사채, EB)A corporate bond that can be exchanged for shares the issuer already owns, such as treasury stock or shares in another company.
- Reverse stock split (액면병합)Combining several shares into one, cutting the share count and raising the price per share without changing company value.
- Korea Value-up Program (기업 밸류업)A government and exchange initiative, launched in 2024, pushing Korean listed companies to raise shareholder returns and capital efficiency.
- Shareholder meetingThe meeting where shareholders vote on major company decisions.
- Consolidated vs separate statementsConsolidated accounts fold subsidiaries into the parent; separate accounts show the parent alone.
- Holding companyA company whose main business is owning shares in other companies.
- Stock dividendA dividend paid in newly issued shares instead of cash.
- Record dateThe date you must be on the shareholder register to receive a dividend or vote.
- Par valueThe nominal amount per share set when the shares were created.
- Supply contract disclosureA filing required when a listed company signs a sales or supply contract above a size threshold.
- Change of largest shareholderThe shareholder holding the most shares in a company changes.
- SPAC (special purpose acquisition company)A shell company that lists first with the sole purpose of merging with an unlisted company.
- Merger and spin-off (합병·분할)Corporate restructuring that combines two companies into one (merger) or splits one company into two or more (spin-off).
- Tender offer (공개매수)Buying shares from many shareholders outside the exchange at an announced price, quantity and period.
- DART (Korea electronic disclosure system)The Financial Supervisory Service system where Korean companies file annual reports, material event reports and ownership reports.
Trading rules
- Block deal (블록딜)A large stake sold off-exchange in one go, usually at a discount to the market price.
- Single-price auction (동시호가·단일가매매)Orders are collected and matched at one price — used at the open and close and during volatility interruptions.
- Fails-to-deliver (FTD)Shares a seller did not deliver by the settlement date. The SEC publishes the figures by ticker twice a month.
- Short sellingSelling borrowed shares first and buying them back later, profiting if the price falls.
- Margin tradingBuying stocks with money borrowed from a broker, which magnifies both gains and losses.
- Forced liquidationA broker selling a client's shares without consent when a loan or unpaid purchase is not covered.
- Circuit breakerA rule that halts all trading when the market index plunges.
- SidecarA rule that suspends program trading orders for five minutes when futures prices swing sharply.
- Volatility interruption (VI)Switches a single stock to a two-minute call auction when its price jumps or plunges suddenly.
- Administrative issueA stock flagged by the exchange because it risks delisting due to weak results or capital impairment.
- Trading haltThe exchange temporarily blocks trading in a specific stock.
- DelistingRemoval of a stock from the exchange so it can no longer be traded on the market.
- Capital erosionAccumulated losses have pushed total equity below paid-in capital.
- Audit opinionThe external auditor's conclusion on whether the financial statements can be relied on.
- Listing eligibility reviewAn exchange review of whether a company should remain listed, separate from the numeric criteria.
- Listing-day price band (IPO first day)On a Korean IPO's first trading day, the price can move between 60% and 400% of the offer price.
- Nextrade (Korea's alternative trading venue)Korea's first alternative stock trading venue, launched in March 2025 alongside the Korea Exchange.
Investor jargon
- Subscription deposit (청약 증거금)Cash placed up front when subscribing to a Korean IPO — usually 50% of the order, refunded for unallocated shares.
- Foreign net buyingForeign investors buying more (by value) than they sell over a period.
- Program tradingLarge baskets of stocks bought or sold at once by computer programs.
- Featured stockKorean news articles flagging stocks with unusual price or volume moves and explaining why.
- Theme stocksGroups of stocks that move together because they are tied to the same issue or industry trend.
- Averaging downBuying more of a stock after it falls to lower your average purchase price.
- Turnaround (return to profit)A company swinging from a loss to a profit, usually measured by operating profit.
- Share pledge (stock-backed loan)Borrowing money by pledging shares as collateral.
Rules described reflect the Korea Exchange as of September 2026 and may change.