9th XBRL International Conference (Auckland, New Zealand)
KOSDAQ :
A Window into
the Korean Capital Market
K O S D A Q S t o c k M a r k e t I n c . M A Y 10 ~ 14. 2 0 0 4
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TABLE of CONTENTS
I : About KOSDAQ
01. KOREA & IT Industrial Development
02. KOSDAQ is …
03. Key Statistics
9th XBRL International Conference
A Window into
the Korean
Capital Market
K O S D A Q
Mission of KOSDAQ XBRL Project
II : Review of XBRL Pilot Project
01. Introduction
02. Approach
03. XBRL Pilot Service at KOSDAQ
III : Star Index Project (Expansion Project)
01. Introduction
02. Enhanced Features compared with the Pilot Project
03. Benefits
Ⅳ : Global Investor Relations
Management Project
01. Introduction
02. Approach
03. Benefits
Summary of KOSDAQ XBRL Project
Ⅴ : Next Steps
01. KOSDAQ’s Efforts
02. Next Step
03. KOSDAQ: Role in the Korean Economy
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I : About KOSDAQ
01. KOREA & IT Industrial Development
(World competitiveness)
12th
12th
5th
2nd
GDP
(2002)
Trade Scale
(2003)
Automobile
Shipbuilding
1st
1st
2nd
5th
Semiconductor
TFT-LCD
Internet User
[2003]
Mobile Phone User
[2003]
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I : About KOSDAQ
02. KOSDAQ is …
 KOSDAQ has achieved unprecedented growth along with that of
Korea's flourishing IT industry.
 Entrepreneurial pioneers in the IT, BT, and CT industries are making
their dreams come true through KOSDAQ and they form a vital
resource for Korea's future economic growth.
IT
42%
•Listed companies (2003.12)
•New Index composition
Others
Transportation
3%
Construction Finance
1%
2%
3%
Logistics
5%
Manufacturing
35%
CT
6%
BT
3%
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I : About KOSDAQ
03. Key Statistics – Among Asia New Markets
# listed Co’s
(Unit: Co’s)
Trading Value
874
843
(Unit: bil.KRW)
702
1,728
1,205
1,078
359
Daily Avg. Trading
Value (DEC, 2003)
1000
500
395
429
JASDAQ Gre Tai KOSDAQ
(Japan) (Taiwan) (Korea)
4
‘97 ‘99 ‘01 ‘02 ‘03
‘97 ‘99 ‘01 ‘02 ‘03
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I : About KOSDAQ
03. Key Statistics - Global Status
(US$ bil.)
Rank
No. of Listed
Companies
Rank
Accumulated
Trading Value
Rank
Market Cap.
1
Mumbai(5,644)
1
NYSE (9,692)
1
NYSE (11,328)
2
TSX Group(3,616)
2
Nasdaq (7,068)
2
Tokyo (2,953)
3
Nasdaq(3,294)
3
London (3,624)
3
Nasdaq (2,844)
4
Spanish Exchange
(BME)(3,223)
4
Tokyo (2,130)
4
London (2,425)
14
KOSDAQ(874)
13
KSE (459)
16
KSE (298)
17
KSE(684)
19
KOSDAQ(223)
41
KOSDAQ(31)
* WFE Dec. 2003
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Mission of KOSDAQ XBRL Project
Mission of KOSDAQ
Active support of companies
seeking growth
(Increase brand value)
Protect investors
thru increased transparency
(Build investor confidence)
Make efforts
to set global standars for
a sound capital market
(Enhance market integrity)
Project Evolution
Phase1
Pilot
Project
Phase2
Star Index
Project
Phase3
Global IR
Management
Project
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Pilot
II : Review of XBRL Pilot Project
01. Introduction - Project Goal
Establish K-GAAP Taxonomy
- Approval from XBRL International
- XBRL adoption among participating Korean Companies
Increasing Market Transparency
- Provide standardized Financial Statements through XBRL
- Empower investors by providing enhanced analytical tools
Frontier in XBRL Technology in Korea
- KOSDAQ is the first organization in Korea to deploy XBRL
KOSDAQ
Standardized
Financial Statements
Faster Update of F/S &
Enhanced Analytical Tools
-PwC
-UB Matrix
Simpler
Process
Investor
Trust
COMPANIES
INVESTORS
Investment
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Pilot
II : Review of XBRL Pilot Project
02. Approach – Tasks & Steps
Phase 1.
K-GAAP Taxonomy
(Korean Standards)
K-GAAP Taxonomy
Definition/
Establishment based
on Korean Companies
Accounting Principles
Phase 2.
Extended FSS Taxonomy
(Commercial &
Industrial)
In actual industry
accounting practices
over 2,500 accounts
were used, FSS*
Element Extension
Phase 3.
Company
Extension
Naming and defining
down to the level of
Individual Company’s
User defined
Accounts
(excluded in FSS
Accounts Schema)
* FSS : Financial Supervisory Service
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Pilot
II : Review of XBRL Pilot Project
03. XBRL Pilot Service in KOSDAQ
GAAP Taxonomy
(686 representative
accounts)
FSS Taxonomy
(2,541 detail
accounts)
Expansion
Auditor’s Report
in Annual Report
(SGML)
Mapping
Table
XBRL
Instance Document

View/
Analyze
On-line Viewers
(Web)
Converter

Off-line Viewers
(Excel)
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Pilot
II : Review of XBRL Pilot Project
03. XBRL Pilot Service at KOSDAQ
Excel-based
Financial Analytical Tool
KOSDAQ Web-based
Financial Analytical Site
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III : Star Index Project
Star
01. Introduction – Why Star Index Project?
Success of XBRL Pilot
Service & Recognition
of Value of XBRL
Increased Demand
for XBRL Services
by Listed companies
Maximizing Value of XBRL
thru Selection of High
Quality Companies
Increase
Visibility of
BlueChip Index
Improve
Corporate Image
& Brand
STAR
Recognition
Index
Selection
Expansion of
Investment
Pool
STAR
Index
Project
Improve &
Expand Scopes
Of Pilot Project
Platform
Leading into
Global IR
Project
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III : Star Index Project
Star
01. Introduction – What is Star Index?
Star Index – Companies chosen based on SUPERIOR earnings
performance, financial soundness,
corporate governance,
liquidity and market cap.(37.5%)
IT
42%
Others
3%
Construction Finance
2%
3%
Logistics
5%
Manufacturing
35%
CT
6%
BT
3%
“BLUECHIP” Index of KOSDAQ
NASDAQ  Nasdaq100
KOSDAQ  Star30
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III : Star Index Project
Star
01. Introduction – Project Goal
To provide corporate information with XBRL technology
for 30 Star Index companies to all Market Participants
 Contractor : PwC(Samil), UB Matrix
- Personnel
- Software
- Duration
- Samples
: Accounting Consultants(4), Engineer (5)
: UBmatrix Automator, Web Analyzer, Oracle, JSP, Excel
: 29 Mar 2004 ~ 17 Jun 2004
: 30 Star Index Companies
 Project Deliverables
- Korean GAAP Taxonomy + 30 Company Level Taxonomies
- 5-year annual reports (Instance Documents) of 30 companies
- Web Analyzer (CoA, Notes, Market Data, Annual Reports)
- Excel Analyzer (CoA, Notes)
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III : Star Index Project
Star
02. Enhanced Features of Star Index Project
Pilot Project
Star Index Project
15 sample companies
30 Star index Companies
FSS Taxonomy
Company Level Taxonomy
(1)
SGML Code
KOSDAQ Code
(2)
Financial Information only
Additional Non-Financial
Information
(3)
Pilot Application
Advanced Application
(4)
Taxonomy Versioning
(5)
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III : Star Index Project
Star
02. Enhanced Features of Star Index Project
[ Pilot Project ]
GAAP
Taxonomy
GAAP
Taxonomy
Data Flow
Element Name
Element Name
FSS
Taxonomy
A Company
Taxonomy
SGML Code
A’s Auditor’s
Report
[ STAR Index Project ]
Architecture
Inheritance
B Company
Taxonomy
C Company
Taxonomy
KOSDAQ Code
B’s Auditor’s
Report
C’s Auditor’s
Report
A’s Annual
Report
B’s Annual
Report
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C’s Annual
Report
III : Star Index Project
Star
03. Benefits
Individual Companies Can Manage
Taxonomy Elements
Structured Taxonomy Elements
will be Mapped to Each Company’s
Accounting System
XBRL formatted Financial
Information will be Saved
in Repository as Data Base
KOSDAQ Code acts as a Buffer
Adjusting to Changes in Company’s
New Transaction & Accounting
Terms
Non-Financial Information
Can be Standardized
Key Performance Indicators from
Annual Report will be provided
to Investors in XBRL
Global IR Management Project is
the Best Case for Standardization
of Value-based Management
of Corporate Information
Linking Financial Statements to
Non-Financial Information will
Enhance Corporate Performance
Analysis
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Ⅳ : Global IR Management Project
01. Introduction – Why Global IRM Project?
True
Value
The traditional financial reporting model
is no longer adequate
Future Business
Reporting Model
– Declining relevance of historical data
as an indicator of future performance
Global IR
Management
Project
– The market wants more information
about non-financial factors
Star Index
Project
Undervalue
XBRL Pilot
Project
Financial
Information
Additional
Non-Financial
Information
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Ⅳ : Global IR Management Project
01. Introduction – Why Global IRM Project?
IRM
To Provide "value embedded Corporate Management Contents" to the market
more efficiently
NOW
After Global IRM Project
Information needs
Information needs
“Information Gap”
“Information Gap”
Added Value
Reporting
Analyst Corporate
Reports & Forecasts
Reporting to
Financial Supervisor
Analyst Corporate
Reports & Forecasts
Typical Financial
Information
Typical Financial
Information
? Time
2000 Time
Reporting to
Financial Supervisor
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Ⅳ : Global IR Management Project
01. Introduction – Why Global IRM Project?
KOSDAQ
CEO Survey
(’03.11.18)
Do you believe your share price accurately reflects
the true underlying value of your company?
Over 80% companies believe they’re “undervalued”
80.0%
63.0%
Question 1.
60.0%
40.0%
20.0%
18.5%
13.0%
1.9%
3.7%
Tend to
Agree
Strongly
Agree
0.0%
Strongly
Dis agree
Question 2.
Tend to
Dis agree
Neither
Does the market fully reflect a company’s true
valuation? What more could KOSDAQ do for the
companies to be evaluated correctly in the market?
- More IR & Promotion to domestic/overseas 81.4%
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IRM
Ⅳ : Global IR Management Project
01. Introduction – Project Goal
IRM
“Quality Marketplace for
Shareholders & Venture Firms”
Capital Market Efficiency
Do the Right Thing
Do Things Right
Integrity of Information
using XBRL
Correct Evaluation of companies
with New Global IR Model
Global IR Best practices
Establishing Benchmarks
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Ⅳ : Global IR Management Project
01. Introduction - Project concept
Listed
Companies
Taxonomy
Builder
Build Data
Elements
VR
F/S
IRM
Market
Value Reporting
Data
F/S, Disclosure
Data
Marketing
Data
On-line
Viewers
(applet)
Off-line
Viewers
(eNumerate,
Excel, etc.)
View/Analyze
Investor Briefing
Standardized
Report
Achieve
Correct
Corporate
Evaluation
&
Efficient
Capital
Market
Apply in
Domestic/
Overseas IR &
Fair Disclosure
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Ⅳ : Global IR Management Project
02. Approach
Analyze Current Status
of Sample Companies
Review & Verify
Market Information
IRM
 Analytical Review of Disclosure, Corporate
Information
 CEO, CFO Interview/Survey
 Review of Analyst, Fund Manager reports
 Capital Market Stakeholders’ Interview/Survey
Establishment of
Standardized IB Model
 Industry KPI to meet Global IR Standards
 Industry Standardized Investor Briefing Model
Industry Standardized
Taxonomy
 Industry Standardized IB & KPI Taxonomy
 Reference check for KPI validation
Web Designing
& Mapping
 Web Design & Application support
 Provide Information on the Web
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Ⅳ : Global IR Management Project
03. Benefits
Market Participants
Upgrades
Service for
Star Index Companies
IRM
Benefits
GOAL
More Financial
Resources
Visibility
(Greater BrandValue)
Correct evaluation
Transparent
Information
Builds Investor
Confidence
Improved
Market
Quality & Integrity
Enhanced
Application Tool
Better
Investment Decisions
Your Market
Of Choice
in NE ASIA
Attractive &
Efficient
Capital market
Increase the Market
Stability
New Biz Model
Promotion of IR Model
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Summary of KOSDAQ XBRL Project
XBRL
: Global Standard for
Corporate Financial
Reporting, “Container”
of Corporate Disclosure
Information,
Container
eXtensible Business
Reporting Language
• Create Instance Document thru
Corporate Regulatory Reports &
Creation of Taxonomies
Financial
Institutions
Reports
KOSDAQ
Global IR Management
Framework
: “Contents” to analyze
Corporate Management
Key Performance
Indicators
KOSDAQ Stock Market
: Increased selfregulatory capability
enhances Financial
Information Supply
Chain
Contents
Business
Enhanced Reporting
Analysis Service
Key Performance Indicators
• XBRL Application to Star Index • On-Line Analytical Processing &
• Financial Institutions’ Analysis
Marketing of Financial
with KPI of Global IR Mgmt
Institution’s Analysis
Application to
Star Index
companies
Global IR Mgmt
Framework
Strategy
Market
Overview
Document
Database
Value Strategy
Taxonomy
( e.g. <deposit>100</deposit>)
Managing for Value
Value Platform
Excel Server
Web
Server
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Ⅴ : Next Step
01. KOSDAQ’s Efforts
20%
“Foreign investors
presently hold
Asia New Market Forum
18.0% of
(Seoul, Taipei)
’s
total market cap.”
MOU with Gretai Securities (Taipei)
& Shenzhen Stock Exchange (China)
15%
Global IR
(NY, HK, London)
10%
Star Index
Launch
7.0%
XBRL
Project
5%
XBRL Education
for Star Companies
Pilot Project
Launch
Star Index
Project Launch
Meeting with the Press
for promotion of XBRL
XBRL KOSDAQ
Local Seminar
0%
‘00
‘01
‘02
Global IR Mgmt
Project Launch
‘03
Mar. ‘04
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Ⅴ : Next Step
02. Next Step
XBRL Int’l Approval
on KGAAP Taxonomy
Strategic
Global
Alliances
After Global IR
Management Project
• Co-operate with FSS, KSE for Korea
Standardization in Working Group
• Announce K-GAAP Taxonomy as Standard Financial
Reporting for Korean Companies with the aid of
FSS, KSE & KASB
• Co-operation with FSS to improve e-disclosure
infrastructure from existing SGML to XBRL & XML.
• Stock Exchanges adopting XBRL (Canada, New
Zealand, Japan, China etc.) & Global Information
Vendors (Bloomberg, Reuters etc.)
• Sharing Knowledge of XBRL Project know-how
- XBRL Format Financial Information Exchange
- English Disclosure Exchange
• Value Reporting Enhancement
• ASP Service using XBRL
• Expand participating companies by Market
Consolidation (2004)
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Ⅴ : Next Step
03. KOSDAQ: Role in the Korean Economy
Building Public Trust
Restoring growth
balance between
SMEs & Conglomerate
Facilitating growth in
Knowledge-based
industries
Enhancing
competitiveness of
exchange industry
COMPANIES
INVESTORS
Providing Venture
Capital
Providing various
investment tools
through XBRL
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Thank you
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