Korea Exchange (KRX) said it will fully gather the views of market participants to minimize conflict in the process of introducing a "promotion and relegation (segment)" system, which it is pursuing to mark the 30th anniversary of the opening of the KOSDAQ market. Financial authorities also reaffirmed their policy to push for structural improvements in the KOSDAQ market by introducing segments and strengthening the delisting system.
On the 1st, at a ceremony at the Conrad Hotel in Yeouido, Seoul, marking the 30th anniversary of the KOSDAQ market's opening, Korea Exchange (KRX) Chairperson Jeong Eun-bo said, "We will reorganize the market structure, including a promotion-and-relegation segment, to restore the dynamism of the KOSDAQ market," adding, "In the process of introducing segments, we will actively listen to the views of various market participants to minimize sources of conflict arising from the market structure overhaul."
Jeong presented the cultivation of strong companies and the exit of insolvent ones as core tasks for the KOSDAQ market.
Jeong said, "Accumulated marginal companies have undermined trust in the entire market and become targets of unfair trading," adding, "While swiftly removing insolvent companies, we will expand tailored tech-special listing so that innovative companies such as artificial intelligence (AI) and defense can list in a timely manner."
Jeong added, "With the pioneering spirit that opened the venture market 30 years ago, we must innovate the KOSDAQ market structure and reestablish a transparent and fair market order," emphasizing, "Together with the government, we will actively push to improve the market's fundamentals so KOSDAQ can again become a trusted market."
Financial Services Commission Chairperson Lee Eog-weon also stressed the need to restructure the KOSDAQ market in congratulatory remarks.
The chairperson said, "We will pursue fundamental, structural improvements so KOSDAQ can become the final destination for growth stock investment and rise to the world's top technology stock market," adding, "By separating segments to select representative companies and supporting institutional investors' benchmarks and index inclusion, as well as the development of related exchange-traded funds (ETF), we will create an environment with no reason to transfer to other markets."
Lee added, "To restore market trust and protect investors, starting today we will tighten delisting requirements based on market capitalization and swiftly and orderly remove insolvent companies," and "We will also publish low-PBR companies and induce plans to enhance corporate value so that corporations themselves can move to improve their fundamentals."
However, Lee said, "Fundamental reforms that change the market's fundamentals may require a period of endurance during implementation," adding, "We will create an ecosystem that can coexist by fully communicating with market participants, including operating a regular consultative body with the venture industry."