Alteogen's KOSPI Move Sparks Crisis as Kosdaq Stagnates Near 800-Point Mark... Appeal for Blue-Chip Companies to Stay

Joint Statement Issued by VC, Kosdaq, and Venture Associations
Call for Restraint in KOSPI Relisting
Industry Voices: "Policy Incentives Needed to Retain Blue-Chip Companies"

The venture investment industry has called for leading KOSDAQ companies to refrain from transferring their listings to the KOSPI. This move comes amid growing concerns that the recent trend of top KOSDAQ-listed companies moving to the KOSPI could weaken the innovation ecosystem.

However, some point out that unless the KOSDAQ market itself becomes more competitive, it will be difficult to prevent high-quality companies from moving to the KOSPI.

"Departure of Blue-Chip Companies Weakens Market Investment Appeal and Trust"

On May 13, the Korea Venture Capital Association, the KOSDAQ Association, and the Korea Venture Business Association issued a joint statement, saying, "Leading KOSDAQ companies must remain in the market to protect both the innovation ecosystem and trust in the market."

They emphasized, "There have been a series of cases where companies that have grown to a certain size in the KOSDAQ market choose to transfer their listing. The departure of blue-chip companies inevitably weakens the market's investment attractiveness and foundation of trust, and has a negative impact on the overall innovation ecosystem."

They also explained, "KOSDAQ is not simply a fundraising market but a platform where innovative and venture companies can take a leap forward. When leading companies stay in the market and continue to grow, a virtuous cycle is formed in which investor confidence is maintained and follow-up technology companies are motivated to take on challenges and venture capital continues to flow in."

The associations also announced plans to pursue institutional reforms such as expanding participation by institutional investors, strengthening the foundation for long-term funding inflows, and differentiating regulations. Their intention is to improve the market environment so that staying on KOSDAQ becomes a rational choice for companies.

Market Anxiety Grows Over Alteogen's Planned Transfer Listing

Industry sources interpret the latest joint appeal as being directly triggered by Alteogen's plans to transfer its listing to the KOSPI. As Alteogen, a top-tier bio company by market capitalization on KOSDAQ, pursues a transfer listing, anxiety within the market has intensified.

As of the previous day's closing price, Alteogen's market capitalization stood at 18.3 trillion won, ranking third on the KOSDAQ market. This has raised concerns that Alteogen's move to the KOSPI could impact investor sentiment on KOSDAQ.

The KOSDAQ Association is also reported to have recently sent an official letter to Alteogen requesting reconsideration of the transfer listing. At that time, the association stated, "We ask for a cautious approach, as the transfer of a leading KOSDAQ company to the KOSPI can affect the overall investment appeal and trust in the market."

They further emphasized, "Alteogen is a representative success story showing that the KOSDAQ market functions as a growth platform, enabling technology-driven companies to secure global competitiveness. The presence of Alteogen plays a major role in maintaining investor trust and facilitating the listing of subsequent technology companies."

"Need to Strengthen Market Competitiveness Rather Than Relying on Appeals"

However, some in the industry point out that mere appeals will not be enough to stop the trend of transfer listings, and that institutional reforms addressing the root causes prompting companies to move to the KOSPI must come first. Companies consider a transfer listing to the KOSPI for various reasons, including the inflow of large-scale institutional funds and better access to global investors.

A venture investment industry representative said, "To maintain KOSDAQ's symbolic status as a market for innovative company growth, it's important that leading companies remain. However, from a company's perspective, factors such as liquidity, institutional investor demand, and access to global investors are practical considerations that cannot be ignored."

Jeong Dojin, professor of business administration at Chung-Ang University, commented, "If the cost of raising capital is lower on the KOSPI than on the KOSDAQ, transferring the listing is a rational business decision. It's important to accurately identify the reasons companies choose to transfer their listing and to develop policy incentives that will encourage them to remain on the KOSDAQ."

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