What are the primary market and the secondary market?

The stock market is divided into the primary market (issuance market), where new shares are first supplied through IPOs, paid-in capital increases and the like, and the secondary market (trading market), where shares already issued are traded among investors.

Subscribing for IPO shares takes place in the primary market, while buying and selling on the exchange after listing takes place in the secondary market. Korea's secondary market includes the KOSPI, KOSDAQ and KONEX markets operated by the Korea Exchange, and the K-OTC market, an over-the-counter market.