The KOSDAQ market is struggling, partly due to the exit of major companies. Just as Samsung Electronics and SK Hynix dominate the KOSPI index, the KOSDAQ needs strong leaders to thrive, yet it has seen a trend of major companies leaving. Following the departures of star firms like Naver, Kakao, and Celltrion, the biotech company Alteogen is now preparing to transfer its listing to KOSPI.
According to the financial investment industry on June 22, Naver and Kakao, both representative growth stocks, decided to move to KOSPI in 2008 and 2017, respectively. In 2018, the top market cap biotech firm Celltrion also transitioned to KOSPI, followed by Posco Chemical in 2019. Since then, other leading companies have made similar moves, including PI Advanced Materials and MC Nex in 2021, LX Semicon in 2022, and SK Ocean Plant, BH, NICE Evaluation Information, and Posco DX in 2023, with L&F and Paradise planning to follow in 2024.
These companies share a common trait: they were all flagship firms representing their respective sectors on KOSDAQ. At the time of their transitions, Naver and Kakao held the top two spots in KOSDAQ's market capitalization. Celltrion was also the leading firm, symbolizing the domestic biotech industry. Posco DX and L&F ranked third and fourth in KOSDAQ market cap, respectively, representing the digital transformation and secondary battery material sectors. The migration of these leading companies to KOSPI has intensified concerns over the lack of representative stocks in the KOSDAQ market.
The current situation remains unchanged. Alteogen, the top company by market cap on KOSDAQ, is pursuing a transfer to KOSPI. According to the financial investment industry, Alteogen confirmed its plan for a transfer to the securities market at a special shareholders' meeting at the end of last year. Prior to this, EcoPro BM applied for preliminary review for a KOSPI transfer in 2024 but later withdrew, while HLB attempted a transfer in 2023 that ultimately failed.
The ongoing trend of KOSDAQ's leading companies seeking to transfer listings is driven by expectations of increased institutional investor funding and a reassessment of corporate value. The potential for inclusion in major indices like KOSPI 200 and the anticipated influx of passive funds are significant factors. Additionally, the liquidity and supply-demand dynamics within the KOSPI market are seen as enhancing corporate value expectations.
Eom Min-yong, a researcher at Shinhan Investment Corp, explained, "Considering KOSPI ETFs, KOSPI 100 ETFs, KOSPI 200 ETFs, index funds, and passive funds from pension funds, the potential influx of capital due to the transfer to KOSPI is substantial," shedding light on the reasons behind the exodus of major stocks from KOSDAQ.
* This article has been translated by AI.
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