Stock bourse operators of South Korea and Taiwan have signed a tentative deal to cooperate in the exchange traded funds area, Seoul officials said Sunday.
  

An ETF refers to an investment fund traded on stock exchanges and represents a basket of stocks that reflects an index, which provides retail investors and institutions with a more liquid and risk-hedging tool.
  

The Korea Exchange, South Korea's stock bourse operator, said that it signed a memorandum of understanding with its Taiwanese counterpart, TWSE, on Friday to cooperate in the ETF markets of each nation.
  

Under the deal, the KRX plans to have its ETF listed on the Taiwanese stock market next year, with the Taiwanese bourse operator seeking to do the same in South Korea.
  

The two also will have talks on jointly producing new indices, as well as discussions about listing new products based on the indices on their markets.  (Yonhap)