S.Korea considers new OTC market, no firm plan-KRX

SEOUL, April 14 (Reuters) - South Korea is considering an alternative over-the-counter market but has no detailed plan yet, the Korea Exchange (KRX) said on Monday following a newspaper report that a new junior stock market would be set up.

Citing an exchange source, the Korea Economic Daily reported on Monday that the KRX wants to set up a market similar to London's Alternative Investment Market (AIM) to help small and unlisted companies raise funds.

"We are outlining an idea about the new OTC market," said a KRX spokesman. "But no details have been set."

The proposed market, according to the Korea Economic Daily, will target institutional investors and adopt relatively loose regulations for member companies.

South Korea already has an OTC stock market called Freeboard that is run by the Korea Securities Dealers Association.

In London, AIM attracts small- and medium-sized companies via cheaper and less demanding regulatory approval procedures than the main exchange. (Reporting by Rhee So-eui; editing by Ken Wills)