While the KOSPI index, which surged in the first half, is falling this month, the KOSDAQ index, which had not risen as much as KOSPI, also fell in tandem. Sliding to as low as the 740 level this month, the KOSDAQ index is showing a level similar to before President Lee Jae-myung took office.
In addition, so-called undervalued KOSDAQ-listed companies with a price-to-book ratio (PBR) below 1 have actually increased compared with before the president took office. When PBR is below 1, it is interpreted as the company being undervalued, with its corporate value lower than its book net worth.
According to the Korea Exchange (KRX) on the 24th, as of the 22nd, the number of corporations on the KOSDAQ market with a PBR below 1 came to 951. That accounts for 53% of all 1,802 KOSDAQ-listed companies.
As of June 2, 2025, before the president took office, the number of KOSDAQ-listed companies with a PBR below 1 was 723, or 41% of all listed companies. Although the government said it would resolve the chronic undervaluation of Korea's stock market, including the KOSDAQ market, low-PBR stocks have instead increased.
Among KOSDAQ-listed companies with a PBR below 1 are also solid corporations. Harim(136480), a leader by sales in Korea's chicken processing industry, has a PBR that does not reach 1. Harim, which recorded 1.44 trillion won in sales last year, had a PBR of only 0.86 as of the 22nd. Harim's market capitalization is 284.6 billion won, which is less than even its approximately 444.4 billion won in investment property and tangible assets on a consolidation basis.
Even among semiconductor materials, components, and equipment stocks expected to benefit from the semiconductor cycle, there are low-PBR corporations. In the case of Wonik Materials(104830), the PBR is just 0.8. DB Securities projected that client utilization rates will continue to rise in the second half and previously forecast Wonik Materials' results this year at 380.6 billion won in sales and 70.9 billion won in operating profit.
The reason low-PBR stocks have increased on the KOSDAQ market is largely seen as the main board's rally centered on semiconductor stocks siphoning off market liquidity.
This year, trading value on the main board has surged, but trading value on the KOSDAQ market has instead declined. Over the past year, main-board trading value increased 254%, while KOSDAQ market trading value decreased 5.9% over the same period.
During this period, the KOSDAQ market's share of trading value in the domestic stock market plunged from 41.68% to 15.95%.
A securities industry official said, "Policies such as the KOSDAQ promotion and relegation system that financial authorities plan to implement are important, but for now interest in the KOSDAQ market is far too low," adding, "Small and midsize companies have weak IR and publicity functions, and with scant attention from the brokerage community, few reports are produced, so there is no information. In such a structure, it is difficult to attract the supply and demand needed to lift stock prices."