South Korea's financial regulator said Thursday it will ease regulations on the country's third stock exchange next month, in a move to help bring in more retail investors and start-ups to the burgeoning bourse.

In June 2013, the country launched the Korea New Exchange, a stock trading platform where start-ups and smaller firms can raise funds easily via stock sales instead of having to borrow from banks.

Currently, 80 firms are traded on the KONEX, a sharp increase from 21 companies at its debut, and their total market capitalization stands at some 1.94 trillion won ($1.79 billion).

Although the third stock bourse was regarded as an incubator for young businesses, trading has been listless as only institutions or individual investors with deposits of more than 300 million won are allowed to trade firms listed on the KONEX. The minimum amount for a transaction is set at 100 shares.

The Financial Services Commission said it will lower the required investment ceiling to 100 million won next month to boost stock turnover and speed up the preliminary review process to encourage more venture firms to enter the market.

"KONEX is a thin market with a lack of liquidity, which can be easily manipulated," FSC Chairman Yim Jong-yong said. "We will establish a stable market with higher turnover to help companies finance and vitalize the market."

Although trading volume has steadily picked up in recent months, the bourse's daily turnover stands at 1.08 billion won in the first quarter, according to the FSC.

The financial regulator's moves came as part of broader efforts to support President Park Geun-hye's "creative economy" initiative, which is designed to foster new economic drivers beyond the nation's traditional manufacturing and heavy industries. (Yonhap)