KVX will start the initial exchange offering (IEO) through a partnership with the Korea Blockchain Business Startup Association.

The IEO is different from initial coin offerings (ICOs) in that the exchange bears the risk of fraud for investors. The exchange screens technological viability of issuers. Blockchain developers are eligible for IEO only when they develop a minimum viable product (MVP).
South Korea has blacklisted ICOs as many issuers are mobilizing funds without proving any technological prowess.

Last month, the Korea Blockchain Startup Association and the Korea Blockchain Industry Promotion Association and the Korea University Cryptocurrency Center have unveiled a guideline for issuing IEOs.
The potential issuers must get a pre-set score to pass the screening. Once they the screening, they can issue IEOs and once frauds occur, the exchange would shoulder responsibility for investors.