An digital buying and selling board at Hana Financial institution headquarters in central Seoul exhibits the benchmark KOSPI closing at 4,167.16 factors, up 1.38 %, Friday, whereas the secondary bourse Kosdaq finishes at 937.34 factors, up 0.29 %, marking its highest shut of the yr. Yonhap
A possible blueprint for the secondary bourse Kosdaq is drawing eager consideration forward of this week’s coverage briefing to President Lee Jae Myung, amid two contrasting developments within the index’s path towards reaching the unprecedented 1,000-point mark.
The Monetary Providers Fee (FSC) will ship a briefing, Thursday, marking the primary coverage presentation on to the president overlaying ministries and affiliated organizations since he took workplace in June, supposed to assist him put together for 2026, business officers stated Sunday.
The FSC briefing comes as extra traders count on Kosdaq shares to proceed rising — a constructive improvement on the index’s 1,000-point path — with their out there funds borrowed from brokerage corporations reaching a yearly excessive of 10 trillion gained ($6.76 billion), in line with the Korea Monetary Funding Affiliation, Friday.
On the draw back, Kosdaq’s bellwether inventory, Alteogen, introduced on Dec. 8 that it’s going to transfer to the benchmark KOSPI, whereas second-ranked EcoPro BM can be contemplating leaving — a seamless outflow of top-performing shares that might weigh on Kosdaq’s progress.
“How Kosdaq performs within the close to time period might rely upon the result of the FSC briefing, contemplating the conflicting forces at play,” Jung Eui-jung, head of the Korean Stockholders’ Alliance, stated.
He famous that Kosdaq closed at 937.34 factors, Friday, marking its highest degree this yr after consecutive beneficial properties since April and surpassing the 900-point mark for the primary time in 19 months on Oct. 27.
Accordingly, its market capitalization reached an all-time excessive of 506.74 trillion gained on the identical day.
Regardless of its beneficial properties, Kosdaq nonetheless trails the benchmark KOSPI, rising 37.9 % this yr in contrast with 72.3 % for the principle bourse.
Beneath these circumstances, Kosdaq’s comparatively slower progress might worsen with the departure of Alteogen, which accounts for 4.89 % of the bourse’s complete market capitalization, and much more if second-ranked EcoPro BM, which accounts for 3.38 %, additionally leaves.
“Alteogen and EcoPro BM collectively account for 8.27 % of Kosdaq’s market capitalization, representing a major setback for the bourse in reaching the 1,000-point milestone,” Jung stated. “Furthermore, the migration of corporations which have grown considerably on Kosdaq to KOSPI might reinforce the notion of Kosdaq as a ‘second-tier’ bourse.”
Samsung Securities analyst Jun Gyun additionally emphasised the importance of the FSC briefing, saying, “Kosdaq has been attracting shopping for curiosity as expectations for the federal government’s revitalization insurance policies rise and a good funding surroundings is taking form.”
Business officers stated that if the FSC certainly has a blueprint for the Kosdaq, it could probably give attention to boosting tax incentives for traders and structurally elevating the Nationwide Pension Service’s allocation to the bourse.
The state-run pension fund has already invested greater than half of its portfolio in home and abroad equities.
Alongside this initiative, the ruling Democratic Celebration of Korea is reportedly contemplating the creation of a separate bourse operator to handle Kosdaq independently of the Korea Alternate and is making ready related laws.
