MANILA - The Philippine Stock Exchange (PSE) is set to enter into a memorandum of understanding (MOU) with the Korean Exchange Inc. (KRX) to explore mutual cooperation through information and experience sharing in securities matters.

In a disclosure, the PSE said the MOU was subject to the execution of definitive implementing agreements.

"Through this MOU, we want to create a mechanism for long-term cooperation by developing channels of communication with KRX. We want to explore possible cooperation in several areas related to market information, product development and technology and other possible strategic alliances that are mutually beneficial to both our exchanges," said PSE president and chief executive officer Francis Lim.

A consolidation of Korea's domestic markets, KRX manages and operates businesses relating to securities and futures trading in Korea. As of 2008, its equity markets KOSPI and the tech-heavy KOSDAQ have a total of 764 and 1,037 listed firms, respectively.

The PSE has been negotiating a series of agreements with its counterparts in neighboring countries in an effort to enhance its visibility in the region as well as liquidity in the market.

Just last month, the bourse announced it was forging an agreement with the Ho Chi Minh Stock Exchange of Vietnam for mutual cooperation.

In February, it teamed up with ASEAN exchanges to set up a regional electronic trading link that will allow investors to buy or sell ASEAN-listed securities through their local brokers. The electronic link is expected to be launched next year.