Korea Exchange to implement 2-tier segmentation in KOSDAQ market next year
A senior executive at the Korea Exchange (KRX) said Tuesday the bourse operator will implement a two-tier segmentation system in the KOSDAQ market next year, in a bid to reinvigorate the secondary stock market. Choi Ji-woo, senior executive at the KRX, made the remarks at an investor fair in Seoul earlier in the day. Under the proposed plan, the listed firms on the KOSDAQ market will be divided…
Korea Exchange, or KRX, plans to introduce a two-tier segmentation system in the KOSDAQ market next year, according to a senior executive. The executive, Choi Ji-woo, made the announcement during an investor fair in Seoul. The new system would categorize listed firms on the KOSDAQ market into two segments: a premium sector for large, successful companies and an underperforming sector for less successful firms.
The goal is to create a more efficient market environment that allows KOSDAQ-listed companies to continue growing and investors to identify promising companies more easily. Currently, there are approximately 1,800 firms listed on the KOSDAQ market. By implementing this segmentation, Choi believes the secondary market will become more reliable.
Additionally, the KRX plans to reform the delisting process for potentially unviable firms in the KOSDAQ market to boost investor confidence. The bourse operator will hold a public hearing in the fourth quarter of the current year to begin working on the proposed segmentation.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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