The purpose of the MOU is to set forth a framework for performing activities in which the two Exchanges will cooperate with each other in developing and fostering a favourable environment for the facilitation of cross-border capital flow between Japan and Korea. Those activities may include supporting promotional activities for both TSE and KRX markets, IR activities of companies from both countries, continuous feasibility studies on co-trading arrangements between TSE and KRX, etc.

As a follow-up measure for the "Memorandum of Intent" regarding market linkage discussion signed in August, 2005, the MOU is initiated for both exchanges to collaborate more specifically on the market alliance. By implementing cooperative activities in a more specific manner, the two exchanges look forward to building a closer partnership with each other and advancing the cross-border capital movement in the Asian region.

TSE President & CEO, Mr. Taizo Nishimuro, commented "This collaboration with KRX, one of the major exchanges in Asia, provides an excellent opportunity to enhance further cross-border capital flow in our region. I strongly hope that this initiative will lead to a strategic alliance among the stock exchanges in North-Eastern Asia, which would provide investors and other market participants with greater value and more diverse services."

Mr. Young-Tak LEE, KRX Chairman & CEO, commented "I expect that it will lead our two exchanges to provide customer-oriented value with tangible benefits. Moreover, I hope that this initiative between the two exchanges will further develop to jointly cope with the drastic changes of business environments such as strategic partnership and M&A's among exchanges around the world."