Terrestrial DMB launch: Information and Communication Minister Chin Dae-je, fourth from left, pushes the button together with other dignitaries in a ceremony to begin terrestrial digital multimedia broadcasting (DMB) at the KBS network headquarters in Yoido, Seoul. Public response was limited because DMB signals cannot be received by mobile phones and broadcasting is only available in Seoul and its vicinity. KOSPI Hits Record High 1,300 Points The benchmark stock index on Dec. 1, closed above 1,300 points for the first time ever, raising hopes that stocks will extend their year-end rally, analysts said. The Korea Composite Stock Price Index (KOSPI) advanced 0.66 percent, or 8.54 points, at 1,305.98. The Kosdaq index closed at 727.43, advancing 2.11 percent or 15.04 points. Program buying by institutions lifted the market, with electronics and communication stocks among the strongest performers. "Stocks extended their gains in the course of re-rating," Yang Kyong-sik of Daeshin Securities said. "The market has laid the foundation for a long-term, healthy gains like in advanced stock markets." Despite possibility of short-term correction, Yang predicted the key stock index could reach 1,350 points by the end of the year thanks to ample liquidity, strong fundamentals of the local economy and the investor confidence for a year-end rally. External factors, including the decline in oil prices and a stronger dollar, will help shares continue to rise, Yang added. Electronics and semiconductor companies paced the market's gains in line with their stronger U.S. peers overnight. LG Electronics and rose 3.31 percent to 81,200 won. Hynix advanced 3.20 percent 22,600 won. -- Korea Opens Equity-Linked Warrant Market The Korea Exchange (KRX) opened the equity-linked warrant (ELW) market on Dec. 1. The KRX listed 34 ELWs, issued by 8 securities firms, on the stock exchange. The amount of ELW issuance reaches 183.4 billion won. An ELW is a kind of option that gives the holder the right but not the obligation to buy or sell an underlying asset at a set price, on or before an expiry date. Investors will buy a warrant underlying at cheaper prices than the share price in the stock market and take profit by exercising the option when the stock price goes up on expiry date. "For investors part, a key benefit of an ELW offers investors an easier access to blue chips," KRX official Kim In-soo Said. The ELW market opening is also aimed to raise competitiveness of securities firms, which are given a chance to develop and operate one of the most advanced derivate product, he added. In the ELW market opening ceremony, Kwon Tae-shin, deputy minister of the Ministry of Finance and Economy, said the market will help securities firms to evolve into investment banks. The ministry has recently allowed financial companies to cross over their businesses in a bid to cultivate securities firms to investment banks. Hyundai Securities predicted the ELW market will be established in a short period of time as the future and option markets, taking advantage of the bullish stock market. "The market size could expand to 40 trillion won over 2006, taking 7 percent of the stock market's daily turnover, if the market grows at a similar speed of the benchmarked Hong Kong's ELW market," Chang Seung-chul of Hyundai Securities said. Trading in warrants in Hong Kong, the world's largest ELW market, accounts for about 20 percent of daily turnover. "For the success of the ELW market in Korea, it is most important to enhance an understanding of investors and institutions on the new market," Kim said.