Since the Launch of KOSDAQ Global, Returns Reach 31.8%... Approximately 2.4 Times Higher Than KOSDAQ

The KOSDAQ Global Index, which marked its first anniversary, has outperformed major indices such as the KOSDAQ, KOSDAQ150 Index, and KOSPI, demonstrating excellent performance.

According to the Korea Exchange on the 27th, since the launch of KOSDAQ Global (November 21, 2022 ? November 20, 2023), the return was 31.8%, approximately 2.4 times higher than the overall KOSDAQ (13.2%) during the same period, and 6.5 percentage points higher than the KOSDAQ150 (25.3%).

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

Amid high interest rates and economic downturn, KOSDAQ Global companies recorded superior market performance and profitability compared to non-included companies and those listed on the KOSPI market. While sales increased year-on-year, operating profit decreased by 39.09% and net profit by 36.77%, yet they showed higher profit margins compared to non-included companies and KOSPI-listed companies. Sales increased by 3.0%, outperforming non-included companies (-1.63%), and operating profit margin was 7.93%, net profit margin 7.49%, approximately twice as high as non-included companies (operating profit margin 3.7%, net profit margin 3.75%). During the same period, sales of KOSPI-listed companies slightly decreased year-on-year (-3.05%), and their operating profit margin (2.49%) and net profit margin (6.36%) were lower than those of KOSDAQ Global.

As of the end of October this year, the total market capitalization of KOSDAQ Global was KRW 90.5 trillion, accounting for 25.1% of the KOSDAQ market capitalization (KRW 359.9 trillion). The average market capitalization of included companies was about KRW 1.8 trillion, exceeding 10 times the average market capitalization of the entire KOSDAQ (about KRW 160.2 billion, excluding KOSDAQ Global included companies).

In terms of qualitative achievements, long-term investment demand has increased. By launching English disclosure translation services, expos, and overseas investor relations (IR) meetings, accessibility for foreign and institutional investors was enhanced, and the number of English disclosures centered on KOSDAQ Global stocks significantly increased year-on-year, improving foreign investors’ access to the KOSDAQ market.

The base for indirect investment demand has also expanded. By creating an environment including institutional improvements to strengthen the marketability of KOSDAQ Global, the inflow of passive funds into the KOSDAQ market was expanded. The selection criteria for KOSDAQ stock futures underlying securities were changed to KOSDAQ Global constituent stocks, and 10 additional constituent stocks were selected, expanding risk management tools.

Through the ESG (Environmental, Social, and Governance) forum for KOSDAQ Global companies, international regulatory trends and best practices were shared to raise awareness of ESG management, and efforts to strengthen ESG management among included companies continue steadily.

The Korea Exchange plans to list KOSDAQ Global index futures and individual stock futures for all KOSDAQ Global stocks (50 stocks) next year to provide investment convenience for institutional and foreign investors and lay the foundation for diversifying linked products. A Korea Exchange official stated, "Next year, we will actively support promoting the excellence of KOSDAQ Global and facilitating actual investment attraction by holding KOSDAQ Global expos and IR conferences centered on KOSDAQ Global companies in domestic and international financial hubs." He added, "In addition, we will continue to promote the development of KOSDAQ Global through market feedback collection and institutional improvement reviews."

This content was produced with the assistance of AI translation services.