On the 1st, the KOSDAQ market marked its 30th anniversary. Launched on July 1, 1996, KOSDAQ has served as a growth ladder for Korea's pharmaceutical and biotech industries over the past 30 years. In particular, the technology exception listing system, which targets early-stage innovative technology corporations that do not generate immediate profits, has become a pathway for biotech and medical technology corporations to enter the capital market.
Thirty years on, the K-bio, medical device industry and the KOSDAQ market are at a new inflection point. ABL Bio, Alteogen and LigaChem Biosciences—major corporations listed on KOSDAQ via the technology exception—are proving their technological competitiveness by posting trillion-won–level technology export and commercialization results in the global market.
At KOSDAQ's 30th anniversary event, "KOSDAQ Connect 2026," running from the 1st to the 3rd, biotech corporations recognized for their technological prowess—including Alteogen, ABL Bio, Oscotec, Onconic Therapeutics, PharmaResearch, CLASSYS, Aimed Bio, Orum Therapeutics, Rznomics, Curocell, Next Biomedical, Livsmed and Ensol Biosciences—will turn out in force to meet with institutional investors.
This is a snapshot of the stature the pharmaceutical and biotech industries hold in the KOSDAQ market. At the same time, however, biotech corporations are facing the reality of stricter listing maintenance standards and weakened investor sentiment. The market that supported the growth of the biotech industry is now said to be shifting into one that demands "results and trust."
◇ Building technology export results on the springboard of KOSDAQ growth
According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA), technology exports in the first half of this year totaled eight disclosed deals worth $8.6675 billion (about 13.45 trillion won). The figure has already surpassed half of last year's annual total, and expectations are rising for record highs for a second straight year.
The biggest deal was signed by AriBio. It transferred the global exclusive rights to the oral Alzheimer's treatment "AR1001" to China's Fosun Pharma, clinching a $4.7 billion (about 7 trillion won) agreement. It is the largest technology export deal in the history of Korea's pharmaceutical and biotech sectors.
Alteogen leveraged its human hyaluronidase platform "ALT-B4" to transfer technology in succession to a GSK affiliate and to Biogen. Curacle and Oscotec also signed trillion-won–level contracts, proving their competitiveness in the global market.
Hanmi Pharmaceutical, a KOSPI-listed company, exported technology for the GLP-2–based new drug "sonepeglenatide" to Eli Lilly and Company in the United States. The deal totals up to $1.26 billion (1.952 trillion won), including a $75 million (about 116 billion won) upfront payment.
Industry watchers also say recent technology exports differ qualitatively from the past. Moving beyond early-stage contracts, more clinical-stage new drug and global license deals are being signed, with larger upfront payments than before.
◇ Technology is recognized, but the stock market is "neglectful"
By contrast, the market's assessment was somewhat mixed. While the stock rally centered on artificial intelligence (AI) and semiconductors continued in the first half of this year, pharmaceutical and biotech shares were left out. According to the Korea Exchange (KRX), the KRX Healthcare Index fell 13.7% from the start of the year in the first half.
The market analyzed that investor funds have concentrated in large-cap semiconductor and AI names, and that the continued high interest rate environment has dampened sentiment toward growth stocks focused on research and development (R&D). There were also comments that accounting and disclosure controversies at some corporations have undermined trust in the sector.
An official at a pharmaceutical corporation said, "Beyond external factors such as war and interest rates, issues at some individual corporations have led to a decline in trust across the biotech sector, contributing to a slower recovery in investor sentiment."
Kim Seon-a, an analyst at Hana Securities, said, "As the domestic biotech sector shows high correlation with U.S. interest rates and the U.S. pharmaceutical and biotech market trends, if weak earnings persist, valuation recovery could be limited," adding, "To restore share prices in the pharmaceutical and biotech sector, proving growth through technology transfer is essential."
That said, recently there has been a growing tendency to evaluate not only technology exports but also clinical data, milestone receipts and commercialization potential in a comprehensive manner.
Vice Chairman Lee Seung-kyu of the Korea Biotechnology Industry Organization said, "In the past, when a paper was published in an international journal like Nature Medicine, the stock would hit the upper limit, and technology exports themselves were sometimes taken as success in new drug development," adding, "Now, technology transfer is just one step in the new drug development process, and there is a growing view that emphasizes a sustainable business structure that extends through clinical development and commercialization."
Analyst Heo Hye-min at Kiwoom Securities assessed, "K-bio has now fully moved from 'an era of rising on narratives sustained by dreams' to 'an era of proof by data.'"
◇ Tighter vetting: is a shake-up beginning?
Starting this month, KOSDAQ listing maintenance requirements have also been strengthened. The market capitalization threshold was raised from 15 billion won to 20 billion won, and new criteria were introduced to designate and delist issues trading below 1,000 won. Complete capital impairment on a semiannual basis is now also subject to delisting review.
The financial authorities also prepared safeguards to block cases of evading delisting criteria through reverse stock splits and the like. The aim of the reform is to swiftly remove so-called "zombie corporations" from the market that have long relied on funding without delivering results.
In the initial public offering (IPO) market, the selective trend is also becoming clearer. In the first half of this year, six bio and healthcare corporations listed via the technology exception, the same as last year, but the preliminary review period for listing shortened significantly to an average of 75.7 business days.
A faster review does not mean a lower bar. Some corporations chose to withdraw voluntarily at the preliminary review stage, and those that did list went through verification by the financial authorities on business feasibility, risk factors and valuation, with an average of 2.5 amendments to their securities registration statements.
The financial authorities are also pushing to introduce a promotion-and-relegation segment system that classifies KOSDAQ-listed companies into premium, standard and watch groups.
In the industry, both expectations and concerns are being voiced. Given that new drug development typically takes several years to more than a decade, deficits are inevitable, industry officials note, and this characteristic should be considered. Still, there are expectations that weeding out weak corporations will, over the long term, help raise trust across the biotech industry.
Vice Chairman Lee Seung-kyu said, "Strengthening listing maintenance requirements to enhance market transparency is necessary," while emphasizing, "An environment where innovative technology can take on challenges must also be created." He said, "Items such as loss carryforwards or sales requirements for corporations listed under the technology exception should be proactively reviewed to reflect the characteristics of the biotech industry."
Industry watchers also say that simply raising the listing threshold is not enough to restore market trust; post-listing management and supervision of corporations, along with a maturing investment culture, are also needed.
An investment industry official, speaking on condition of anonymity, said, "There is a need to strengthen targeted management and supervision of some corporations that, after listing when the IPO bar was low, have fueled disclosure controversies."
Analyst Heo Hye-min noted, "While the domestic biotech investment market is maturing, 'meme stocks' that surge without data verification, driven only by flows and stories, coexist, so investors should be cautious."
He said, "K-bio is currently in the process of transforming into a higher-trust market by accelerating the exit of weak corporations and strengthening disclosure and accounting discipline," adding, "As the analytical capabilities of professional private equity funds and biotech-specialized institutions improve, stocks that have risen on unfounded expectations alone will be shaken more often, and the lifespan of 'meme stocks' is likely to shorten."