KRX to split KOSDAQ into premium and standard tiers next year
A senior KRX executive announced that the KOSDAQ market will be divided into two tiers next year to revive the secondary market.
At an investor fair in Seoul, Choi Ji-woo of the Korea Exchange revealed plans to introduce a two-tier segmentation system for the KOSDAQ market beginning next year. The structure will separate heavyweight listings into a premium sector while grouping underperforming firms into a distinct tier. The objective is to create a market environment that supports continued growth of KOSDAQ-listed companies and enables investors to identify attractive prospects more efficiently.
With roughly 1,800 companies currently listed, the segmentation is expected to enhance the market’s reliability. In addition, the exchange intends to reform the delisting process to remove firms that are no longer viable. A public hearing on the segmentation plan will be held in the fourth quarter of this year to commence implementation.
Why it matters
The reform could reshape South Korea's secondary market, influencing investor decisions and company growth.
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