In a speech at the '30th Anniversary Celebration of KOSDAQ' held at the Conrad Hotel in Yeouido, Seoul, Lee Ok-won, Chairman of the Financial Services Commission, stated, "We will pursue fundamental and structural reforms to ensure KOSDAQ evolves into a market that the public can trust and invest in, as well as a growth platform for innovative companies."
The event was organized by the Korea Exchange to reflect on the achievements of the past 30 years and to reinforce KOSDAQ's role as a foundation for the growth of future advanced and innovative industries.
Chairman Lee praised the remarkable growth of KOSDAQ since its launch in 1996. The number of listed companies has increased from 318 to 1,732, a 5.4-fold rise, while market capitalization has surged from 7 trillion won to 515.2 trillion won, a 73-fold increase. Daily trading volume has also skyrocketed from 1.1 billion won to 7 trillion won, an increase of nearly 7,000 times.
He remarked, "Turning 30 signifies a time for self-determination and independence, known as 'Ilib' in Korean culture. As we clarify our vision and fulfill our roles and responsibilities, KOSDAQ must also prepare for a new leap forward."
The government plans to actively support the growth and listing of innovative companies. It will raise the limit for small public offerings from 1 billion won to 3 billion won and support funding for small and venture companies through obligations for large investment banks to supply venture capital. A virtuous cycle of investment, recovery, and reinvestment will also be established through direct and indirect investments using the National Growth Fund and the creation of a secondary fund exceeding 2 trillion won.
The technology special listing system will continue to expand. Initially focused on the biotech sector, it will now include artificial intelligence (AI), energy, space, robotics, IT security, and K-content, with plans for further expansion within the year. Efforts to attract promising foreign companies to list on KOSDAQ will also be intensified to create a new pipeline for listings.
Market restructuring will be actively pursued. Chairman Lee explained, "By segmenting the market, we will select representative companies and create an environment where there is no reason for institutional investors to shift to other markets, supported by the development of benchmark indices and related ETFs."
Additionally, the government aims to expand long-term investment bases through pension funds, business development companies (BDC), and KOSDAQ venture funds, while increasing investor relations (IR) events and research reports to reduce information asymmetry for investors. A system for promotion and relegation between segments will also be introduced to encourage healthy competition among companies.
Restoring market confidence and protecting investors are also key priorities. Chairman Lee announced, "Starting today, we will strengthen delisting criteria based on low-priced stocks and market capitalization, and we will expedite the orderly exit of underperforming companies through a focused management period."
Beginning in November, a system will be implemented to disclose low price-to-book ratio (PBR) companies and encourage the announcement of plans to enhance corporate value. The expanded joint response team for stock price manipulation and the reward system for reporting will be utilized to eradicate unfair trading practices, while principles against dual listings and the introduction of cornerstone investors and pre-demand forecasting systems will further strengthen investor rights.
Chairman Lee emphasized, "Reforming KOSDAQ is an urgent task for the future of KOSDAQ and the leap forward of our economy. The government's policy efforts, responsible market operations by the exchange, and bold innovation and growth efforts by companies must align together."
Following the ceremony, the Korea Exchange will host 'KOSDAQ CONNECT 2026' in collaboration with the Korea IR Council and the KOSDAQ Association on July 2-3 at its Seoul headquarters to enhance interactions between listed companies and investors.
* This article has been translated by AI.
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