Alteogen's KOSPI move fuels concerns amid widening KOSPI-Kosdaq gap

A screen in the dealing room of Hana Bank headquarters in Seoul shows the closing levels of the KOSPI and Kosdaq, April 24. The Kosdaq closed above the 1,200 mark for the first time since 2000 that day, but has since struggled to sustain momentum even as the KOSPI continues to hit record highs. Yonhap

Biotech giant Alteogen’s move toward a KOSPI listing transfer is fueling concerns within the venture capital industry and the Kosdaq market that the secondary bourse could become even more marginalized, according to industry officials and analysts Wednesday.

The sense of crisis comes amid an unprecedented divergence in returns between the country’s main bourse, the KOSPI, and the Kosdaq. While the benchmark index has been driven higher by semiconductor heavyweights such as Samsung Electronics and SK hynix, major Kosdaq sectors, including biotech and battery stocks, have struggled to maintain momentum.

Earlier in the day, the Korea Venture Capital Association, the Kosdaq Association and the Korea Venture Business Association released a joint statement calling on leading Kosdaq-listed companies to remain on the market, warning that the departure of blue-chip firms could weaken investor confidence and undermine the broader innovation ecosystem.

The joint appeal by the three organizations is widely seen as a response to Alteogen’s planned move to the KOSPI. The biotech firm, currently the third-largest company on the Kosdaq by market capitalization, approved its KOSPI transfer plan during an extraordinary shareholders’ meeting in December.

“An increasing number of companies are choosing to leave the Kosdaq after reaching a certain level of growth,” the groups said in their statement. “The Kosdaq serves not only as a capital-raising market but also as a launchpad for innovative and venture-driven businesses. When leading companies remain and continue growing within the market, it helps preserve investor trust while encouraging emerging tech firms and fresh venture capital inflows, creating a sustainable growth cycle for the broader startup ecosystem.”

The Kosdaq Association reportedly sent a separate letter to Alteogen asking the company to reconsider its planned transfer to the KOSPI. The association said the departure of a leading Kosdaq-listed firm could undermine the market’s credibility and weaken its appeal to investors, urging the company to make a prudent decision.

The appeals came as the KOSPI has repeatedly hit fresh record highs while the Kosdaq has struggled to keep pace. Data from the Korea Exchange showed that the KOSPI has jumped about 81.5 percent this year as of Monday. Over the same period, the Kosdaq gained only around 27.7 percent.

Analysts attribute the growing disparity between the two markets mainly to heavy investor concentration in semiconductor giants and continued weakness in biotech shares. Several major biotech companies listed on the junior bourse recently posted steep losses due to failed clinical trials and concerns over earnings performance.

Still, hopes for a Kosdaq rebound remain as financial authorities prepare to introduce a tiered market system later this year to revitalize the bourse.

The plan would divide the Kosdaq into premium, standard and watchlist segments, with fewer than 100 companies selected for the top-tier premium segment based on criteria such as financial strength, growth potential and corporate governance. Regulators believe the overhaul could help restore investor confidence and draw more institutional and long-term capital into the market.

“The Kosdaq reform is ultimately focused on strengthening market liquidity, growth potential and investor confidence,” Kim Ah-young, an analyst at Daishin Securities, said. “The policy aims to improve the market’s structure by weeding out weak companies and enhancing disclosure and research standards to attract more institutional investors.”