As the KOSDAQ market faces pressure, companies with market capitalizations hovering around the 20 billion won threshold are increasingly anxious. Currently, over 50 companies, primarily in the bio, content, and information technology (IT) service sectors, fall within this market cap range.
According to the Korea Exchange on August 3, several KOSDAQ-listed companies, including Humax Holdings, Yeseon Tech, Bio Infra, NCN, Finger Story, Jols, Some Age, CXI, and Hyungji I&C, have been designated as managed companies or have raised concerns about their status due to falling short of the market cap requirement last month.
As of July 31, a total of 49 KOSDAQ-listed companies were reported to have market capitalizations between 19 billion and 21 billion won. Notable examples include Chaperon, Open Noll, Bifido, Encytron, Telcon RF Pharmaceuticals, Inno Simulation, AutoN, and Saltware.
These companies are striving to maintain their market cap of 20 billion won amid declining trading volumes and weakened investor sentiment. The fluctuations in stock prices are significantly influenced by their performance improvements and growth prospects.
Some stocks have experienced substantial declines over the past month. Chaperon fell by 22.8% from July 1 to July 31, while Open Noll dropped by 18.3%. Other companies, including Hanwoo ART (-16.5%), Woori ENL Harutin (-15.8%), PIMS (-13.8%), PN Pungnyeon (-11.2%), CN Research (-10.2%), and Dilly (-10.1%), also recorded double-digit declines.
However, some companies have been recognized for their growth potential. Kwon Tae-woo, a researcher at Hana Securities, projected in a June report that Open Noll would return to profitability based on cost efficiency and synergies from mergers with affiliates. The digital signage business and AI-based recruitment platform were also highlighted as growth drivers.
By sector, the bio, content, and IT service industries have shown a high concentration. These sectors often reflect growth expectations in their stock prices, making them sensitive to performance fluctuations and changes in investor sentiment. The recent decline in trading volumes has further exacerbated the downturn among small and mid-cap stocks.
Kwon Soon-ho, a researcher at Daishin Securities, noted, "The market has interpreted the current situation as a means of distinguishing between strong and weak companies rather than a general positive for the index as a whole," adding that the nature of the system is akin to a long-term market improvement program. He further stated, "In past KOSDAQ bull markets, capital has concentrated on a few stocks due to a combination of growth expectations, liquidity, and policy optimism," suggesting that the differentiation in stock supply and demand could become more pronounced following the introduction of the new system.
Daishin Securities anticipates that the introduction of the new system will lead to increased capital concentration on certain stocks within the KOSDAQ 150 index. In fact, during the regular rebalancing of the KOSDAQ 150 in June, the 16 newly included stocks recorded a 6.0 percentage point higher return than the KOSDAQ 150 over the 20 trading days prior to the change, while the stocks that were removed showed an 8.8 percentage point lower performance.
* This article has been translated by AI.
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