Kosdaq blueprint draws attention ahead of presidential policy briefing, 1,000-point milestone

An electronic trading board at Hana Bank headquarters in central Seoul shows the benchmark KOSPI closing at 4,167.16 points, up 1.38 percent, Friday, while the secondary bourse Kosdaq finishes at 937.34 points, up 0.29 percent, marking its highest close of the year. Yonhap

A potential blueprint for the secondary bourse Kosdaq is drawing keen attention ahead of this week’s policy briefing to President Lee Jae Myung, amid two contrasting developments in the index’s path toward reaching the unprecedented 1,000-point mark.

The Financial Services Commission (FSC) will deliver a briefing, Thursday, marking the first policy presentation directly to the president covering ministries and affiliated organizations since he took office in June, intended to help him prepare for 2026, industry officials said Sunday.

The FSC briefing comes as more investors expect Kosdaq stocks to continue rising — a positive development on the index’s 1,000-point path — with their available funds borrowed from brokerage firms reaching a yearly high of 10 trillion won ($6.76 billion), according to the Korea Financial Investment Association, Friday.

On the downside, Kosdaq’s bellwether stock, Alteogen, announced on Dec. 8 that it will move to the benchmark KOSPI, while second-ranked EcoPro BM is also considering leaving — a continuing outflow of top-performing stocks that could weigh on Kosdaq’s growth.

“How Kosdaq performs in the near term could depend on the outcome of the FSC briefing, considering the conflicting forces at play,” Jung Eui-jung, head of the Korean Stockholders' Alliance, said.

He noted that Kosdaq closed at 937.34 points, Friday, marking its highest level this year after consecutive gains since April and surpassing the 900-point mark for the first time in 19 months on Oct. 27.

Accordingly, its market capitalization reached an all-time high of 506.74 trillion won on the same day.

Despite its gains, Kosdaq still trails the benchmark KOSPI, rising 37.9 percent this year compared with 72.3 percent for the main bourse.

Under these circumstances, Kosdaq’s relatively slower growth could worsen with the departure of Alteogen, which accounts for 4.89 percent of the bourse’s total market capitalization, and even more if second-ranked EcoPro BM, which accounts for 3.38 percent, also leaves.

“Alteogen and EcoPro BM together account for 8.27 percent of Kosdaq’s market capitalization, representing a significant setback for the bourse in reaching the 1,000-point milestone,” Jung said. “Moreover, the migration of companies that have grown substantially on Kosdaq to KOSPI could reinforce the perception of Kosdaq as a ‘second-tier’ bourse.”

Samsung Securities analyst Jun Gyun also emphasized the significance of the FSC briefing, saying, “Kosdaq has been attracting buying interest as expectations for the government’s revitalization policies rise and a favorable investment environment is taking shape.”

Industry officials said that if the FSC indeed has a blueprint for the Kosdaq, it would likely focus on boosting tax incentives for investors and structurally raising the National Pension Service’s allocation to the bourse.

The state-run pension fund has already invested more than half of its portfolio in domestic and overseas equities.

Alongside this initiative, the ruling Democratic Party of Korea is reportedly considering the creation of a separate bourse operator to manage Kosdaq independently of the Korea Exchange and is preparing relevant legislation.