Lucentblock Passes Sandbox; Institutionalization Rivals: Nextrade, Exchanges

Democratic Party lawmaker Park Beom-kye raised concerns about fairness in the financial innovation process, citing the controversy over the alleged use of confidential information between alternative trading system Nextrade and fintech startup Lucentblock during a parliamentary audit. According to Rep. Park, Nextrade signed an NDA (Non-Disclosure Agreement) with Lucentblock while discussing the formation of a consortium for OTC exchange licensing, receiving core materials such as financial statements, business plans, and technological capabilities. However, Rep. Park alleges that Nextrade subsequently breached the contract, formed its own consortium, and there are indications that the materials provided by Lucentblock were utilized. Rep. Park criticized this as "an issue of trust and business ethics before the law" and an unfair act where a large public institution usurps the innovation market of a startup. In response, Nextrade completely denied Lucentblock's allegations of confidential information misappropriation raised through the media, stating that they "received general company status materials at the initial stage of investment consortium discussions." Nextrade emphasized that the core values for OTC exchange licensing are "transaction innovation and stability." The core issue of this controversy narrows down to the nature of the provided data (confidential information vs. general status materials). Rep. Park criticized this as "entrenched interest-centric institutionalization," where large institutions like Nextrade (with securities firms as shareholders) and the Korea Exchange compete based on startup data, leading to a structural problem where startups that attempted innovation through the sandbox are instead frustrated in market entry during the institutionalization phase. Financial Services Commission Chairman Lee Bok-hyun stated that additional points would be given to sandbox operators and their consortia during the licensing review. However, concerns are high in the industry that "additional points alone make it difficult to resolve the asymmetric competitive structure," considering the capital power and influence of large institutions. Rep. Park called for a rigorous investigation by the Financial Services Commission and the establishment of fair market order, highlighting that ensuring fair opportunities for startups in the institutionalization process of innovative financial services has emerged as a key issue.