This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:22 p.m. on Sept. 11, 2026.
Generative AI development startup Upstage has set its course for a KOSDAQ listing. The move is seen as a way to reduce listing uncertainty, such as delays in the preliminary review, and it is believed to have been influenced by Korea Exchange (KRX) Chairman Jeong Eun-bo personally encouraging a KOSDAQ listing earlier.
According to the investment banking (IB) industry on the 11th, Upstage recently told major financial investors (FIs) and the IPO underwriter group that it is prioritizing KOSDAQ as its destination for an initial public offering (IPO). Although procedures such as prior consultations with the Korea Exchange (KRX) remain, the company has also decided to file for a preliminary listing review within the year.
Upstage, a Generative AI development startup, launched in 2020. It was founded by Kim Sung-hoon, a professor at the Hong Kong University of Science and Technology who previously led AI development at Naver. It drew attention last August when it was the only startup selected for the government-led "independent AI foundation model project."
Upstage had long been considered a strong candidate for a listing on the main board (KOSPI). Although it is a loss-making corporations that posted an operating loss of 30.5 billion won last year, it could use the "unicorn special listing" that allows loss-making corporations to enter KOSPI if their market capitalization is at least 1 trillion won after listing.
Expectations for a KOSPI debut were also supported by Upstage's valuation surging to 2 trillion won after investments from the Public Growth Fund and others. Upstage is the first unicorn among domestic AI software corporations, and there was a view that KOSPI would be suitable from a liquidity standpoint to support fundraising after listing.
Analysts say the Korea Exchange (KRX)'s efforts to attract AI corporations to revitalize KOSDAQ led Upstage to prioritize KOSDAQ. In fact, in May, Korea Exchange (KRX) Chairman Jeong Eun-bo met directly with AI corporations such as Upstage and Rebellions and encouraged them to list on KOSDAQ.
The Korea Exchange (KRX) believes that for KOSDAQ, which previously focused on bio and entertainment, to make a comeback, it must secure leading players in next-generation growth industries such as AI, robotics, and space and aerospace. It has offered tailored review guidelines and pulled out the carrot of promotion to KOSDAQ's first division league.
Upstage is said to believe that pursuing a KOSDAQ listing can reduce uncertainties such as delays in the listing review. Concerns reportedly included that a KOSPI bid, where performance criteria are stricter, could lead to an open-ended preliminary review, making it difficult to pinpoint the listing timing.
Particularly noteworthy is that Lablup, which sat at the table when Chairman Jeong encouraged Upstage's KOSDAQ listing in May, had its preliminary review wrapped up in a flash. It filed for KOSDAQ preliminary review on May 21 and received approval on July 30, about two months later. It was the fastest preliminary review this year.
The judgment that it is better to become a leading stock on KOSDAQ than to enter KOSPI and remain in the lower ranks of market capitalization also positively influenced the prioritization of a KOSDAQ listing. The Korea Exchange (KRX) is pushing to create a promotion-and-relegation segment on KOSDAQ and has put AI and semiconductor corporations on the shortlist for direct advancement to the first division league.
A VC official who invested in Upstage said, "A KOSPI listing isn't impossible, but rather than facing uncertainty over how the review would turn out when pursuing KOSPI, KOSDAQ is better," adding, "It may also be better to become one of the top market-cap companies on KOSDAQ."
Meanwhile, Upstage says it has not yet finalized a KOSDAQ listing. A company official said, "It's true we are weighing KOSPI and KOSDAQ, but nothing has been decided," adding, "We will carefully determine the listing market and timing after considering various conditions."