"The essence of KOSDAQ is innovation. Companies should not be judged for immediate results and deemed for delisting just because they are not performing right away."
Hwang Cheol-joo, Chairman of Jusung Engineering, made this statement regarding the revitalization of KOSDAQ.
During a CEO discussion at the KOSDAQ 30th Anniversary event held on July 1 at the Conrad Hotel in Yeouido, Hwang emphasized that KOSDAQ should not be evaluated using the same criteria as KOSPI, asserting that its core is 'innovation.'
"A market is a space where buyers and sellers meet," he said. "A good market allows buyers to purchase at their desired price and sellers to sell at their desired price."
He continued, stating that KOSDAQ-listed companies grow based on technology and innovation, while KOSPI companies grow based on long-established trust. "Innovation and trust cannot coexist in the same time and space," he explained.
Hwang stressed that innovative companies require sufficient time to gain recognition in the market. He noted, "Innovation may lose its value over time, but trust is built over time," adding that innovative companies must engage with the market to have their value recognized.
He cited NVIDIA as an example, stating, "NVIDIA was founded in 1993, but it took over 20 years for its corporate value to skyrocket. Other leading American innovative companies like Tesla, Apple, and Google went through the same process."
However, he pointed out that the domestic market does not provide innovative companies with enough time. Hwang remarked, "It seems that in our country, there is an expectation for companies to become the best in the world and win Olympic gold medals as soon as they are established. Innovation requires patience, and the market also needs time to wait."
Regarding the recent push for stricter delisting policies for KOSDAQ, he urged a cautious approach. He stated, "We need to differentiate between companies with no growth potential and those that have not yet met the market to have their value recognized," emphasizing that not all companies without immediate results should be considered for delisting.
He added, "It is crucial to clearly distinguish between companies lacking technology and innovation and those that have not yet engaged with the market. Unnecessary companies and those that have not yet had growth opportunities are different."
Hwang also raised the need for improvements to the short-selling system. He noted, "KOSDAQ companies have much less capacity to respond to short-selling compared to KOSPI companies, and there are many cases where corporate value is undervalued due to short-selling, hindering growth." He suggested that KOSDAQ consider limiting short-selling or excluding innovative companies below a certain size from short-selling targets.
Additionally, he argued for expanding the long-term investment base for innovative companies. He stated, "There needs to be a system where long-term investment funds, such as pension funds, can invest a portion in KOSDAQ innovative companies," emphasizing that it cannot be achieved by the efforts of a single institution but requires the collective effort and time of all market participants.
Hwang concluded by stating, "Value is created when innovation meets the market," urging a shift away from the mindset of evaluating KOSDAQ companies by KOSPI standards to ensure the continued emergence of global companies."
* This article has been translated by AI.
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