Kosdaq Stalls in 900s, Eyes Government Policy Support

The Kosdaq market, which opened in 1996, is showing sluggish performance, lingering around the 900-point level, lower than at its inception.

Kosdaq was established to help small and medium-sized enterprises and venture companies secure funding, starting with 300 listed companies and a market capitalization of 7.6 trillion won. During the IT boom in 2000, it soared to 2,925.5 points, enjoying a period of prosperity, but declined sharply after the bubble burst. Its all-time low was recorded during the 2008 global financial crisis, and since then, it has primarily traded between the 400 and 700 levels. Unlike the KOSPI, which saw significant gains this year, Kosdaq has only risen by 0.42%, showing one of the worst performances globally.

To restore confidence in the Kosdaq market, efforts are needed to identify investable companies and promptly delist underperforming ones. The Korea Exchange has proposed a restructuring roadmap for Kosdaq to regain trust, including the introduction of a segment system and enhanced delisting of troubled companies, alongside investments from the National Growth Fund.