Kim Hak-kyun, head of the research center at Shin Young Securities, began his career as an analyst in 1997. He has worked at Shinhan Investment Corp., Korea Investment & Securities, and Mirae Asset Daewoo before leading the research center at Shin Young Securities. He has witnessed significant turning points in the Korean capital market, from the Asian financial crisis to the global financial crisis and the surge in the stock market following the COVID-19 pandemic. While the KOSPI has seen some growth, the KOSDAQ has struggled to escape its prolonged slump. How can the KOSDAQ market be revitalized?
Kim emphasized that restoring market trust is essential. He stated, "There are too many stocks in the KOSDAQ, leading to poor management and significant information asymmetry. Successful companies in the KOSDAQ often move to the main board, but fundamentally, nothing changes. They leave due to the market's poor reputation."
He pointed out, "In Korea, the KOSDAQ is the only market where venture investors can invest in listed companies and recoup their investments. If the KOSDAQ thrives, initial public offerings (IPOs) will increase, but the presence of too many questionable companies raises doubts about the market's integrity." He added, "The market was launched 30 years ago with an index of 1,000. It is unacceptable that it fluctuates around 800 now."
Regarding government policies to revitalize the KOSDAQ, he said, "We need to first separate good companies from poor ones before implementing any revitalization measures. It would be beneficial to isolate stocks that are deemed difficult to remain in the public market. We need to distinguish between the good and the bad."
Some have criticized the tightened delisting criteria as overly strict. Kim acknowledged that it is possible to argue that the current policies are excessive, but he stressed, "To revive the KOSDAQ market, we must reflect on the past 30 years of its existence."
* This article has been translated by AI.
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