Efforts to Vitalize the KOSDAQ MarketGLOBAL PREMIER EXCHANGE
Restructuring of the KOSDAQ Market Governance for Improved Independence
The KRX has restructured the KOSDAQ Market’s governance in order to reinforce the funding function for SMEs/startup companies and operate the market independently in line with its characteristics.
The KOSDAQ Market Committee, which is composed of external experts, plays a role of the highest decision-making body and determines alone matters related to the listing reviews, delisting, changes of business rules to secure independence for the KOSDAQ market operation and lay foundations for creating a unique identity of the market.
Listing Requirement Improvement and Listing Promotion
By improving the listing review requirements, the KOSDAQ market has provided a channel for companies that have strong technology and growth potential to get listed easily. Also, a “transfer listing” system was established for promptly listing on the KOSDAQ market the companies that were formerly listed on the KONEX market and validated to have strong growth potential.
In addition, aggressive marketing activities were conducted to lay a foundation for promoting the listing of blue chip companies which are based in Korea and overseas.
Meeting the Demand of Institutional/Foreign Investors
As a highly active market full of trades by individual investors, the KOSDAQ market needs to have the enhanced roles played by institutional/foreign investors because the trading turnover ratio is high and trading is volatile.
In order to boost the demand by institutional/foreign investors, the KRX is expanding the tools for investment risk management such as ETFs and individual stock derivatives with KOSDAQ stocks as their underlying assets. Also, the KRX will make efforts to develop various products by generating new indices such as the KOSDAQ150 Index.
Strengthening the Market Soundness
The KOSDAQ with various policies has endeavored to make its market more matured and sound. Thanks to such an effort, the number of unfair transactions and the case designated as “unfaithful disclosure companies” are declining consistently. Also with a full-fledged initiative for creating a healthier market, the cases of delisting are decreasing. The KRX will spare no efforts in improving the soundness of the market further.