Government Pushes Capital Market Revitalization; KOSDAQ in Focus for H2

The government is leading the growth of the domestic stock market through capital market revitalization. Securities firms analyze that the government is concentrating on fundamental institutional improvements to ensure money flows smoothly into the market, rather than merely boosting stock prices. They observed that the government's capital market revitalization policies aim not for temporary stock price support, but for fundamental structural reforms designed to channel funds into the capital markets. Instead of direct intervention through fiscal spending, the government is inducing market inflow by adjusting the asset allocation structures of existing funds, including pension funds and private capital. A multi-layered policy package is being pursued, combining tax incentives, improvements in institutional investor supply and demand, and market system reforms. This includes separate taxation of dividend income, adjustments to pension fund investment criteria, and the introduction of Business Development Companies (BDCs).

Amid this policy direction, the KOSDAQ market, where movements of major funds like pension funds are expected to change, is drawing more attention in the second half of the year. Daishin Securities recently presented its KOSDAQ investment strategy for the second half in a report. The report suggests a bifurcated approach to the stock market, distinguishing between KOSPI and KOSDAQ, with a strategy focused on dividends and value-up for KOSPI, and growth and innovation for KOSDAQ. For the KOSDAQ market, structural changes are being sought through measures such as strengthening delisting criteria and expanding related research, along with plans to increase pension fund investment in KOSDAQ from the current level of 5-6 trillion won to 10-20 trillion won in the medium to long term.

Daishin Securities released its outlook for the KOSDAQ market in the second half, focusing on structural reform policies such as the government's policy direction, pension fund supply and demand, capital inflows through KOSDAQ Venture Funds, BDCs, and National Growth Funds, as well as the elimination of non-viable companies and expanded research. The report analyzes that KOSDAQ stocks in the artificial intelligence (AI), space, and energy sectors are expected to benefit. Indeed, pension fund buying activity is being observed primarily in the robotics and bio sectors, and the Financial Services Commission's announcement of introducing customized technological special listings in AI, space, and energy sectors is also acting as a positive factor.