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 Kosdaq blue-chip companies to refrain from switching their listings to the KOSPI. This is due to growing concerns that the recent trend of top market-cap Kosdaq companies moving to the KOSPI could undermine the innovation ecosystem.

However, there are also voices pointing out that unless the Kosdaq market itself becomes more competitive, it will be difficult to prevent the flow of blue-chip companies moving to the KOSPI.

On May 13, the Korea Venture Capital Association, the Kosdaq Association, and the Korea Venture Business Association issued a joint statement saying, "Kosdaq blue-chip companies must remain in the market to safeguard both the innovation ecosystem and market trust."

They emphasized, "Cases of companies that have grown to a certain scale in the Kosdaq market opting to transfer their listings continue to occur," and added, "The departure of blue-chip companies inevitably weakens the market's investment appeal and trust foundation, and has a negative impact on the entire innovation ecosystem."

They further explained, "Kosdaq is not simply a fundraising market, but a platform for innovative and venture companies to leap forward," and stated, "When leading companies remain in the market and continue to grow, a virtuous cycle is established—investor trust is maintained, and follow-up technology firms are encouraged to take on challenges, with more venture capital flowing in."

The associations also announced plans to promote institutional improvements, including expanding institutional investor participation, securing a foundation for long-term capital inflows, and introducing differentiated regulations. The goal is to improve the market environment so that staying in Kosdaq will become a rational choice for companies.

Within the industry, there is an interpretation that Alteogen's recent move to switch its listing to the KOSPI is one of the direct triggers behind this joint appeal. The sense of crisis in the market has grown as Alteogen, a leading biopharmaceutical company by market capitalization on the Kosdaq, pushes for a KOSPI listing.

As of the previous day's closing price, Alteogen's market capitalization stood at 18.3 trillion won, ranking third in the Kosdaq market. This is why there are concerns that Alteogen's move to the KOSPI could affect investor sentiment in Kosdaq.

The Kosdaq Association is also reported to have recently sent an official letter to Alteogen requesting a reconsideration of its planned transfer to the KOSPI. At the time, the association stated, "We ask for a cautious approach, as the transfer of a representative Kosdaq company to the KOSPI could affect the overall investment appeal and credibility of the market."

The association also stressed, "Alteogen is a representative success story demonstrating that the Kosdaq market functions as a growth platform, enabling technology-driven companies to achieve global competitiveness," adding, "Alteogen's presence plays a significant role in maintaining investor trust and encouraging subsequent technology companies to list."

However, there are also criticisms from the field that such appeals alone are not enough to stem the flow of companies transferring their listings. Institutional improvements addressing the root causes behind companies choosing to move to the KOSPI must come first. From a corporate perspective, there are various reasons to consider a KOSPI transfer, such as the inflow of large institutional funds and greater accessibility to global investors.

A source in the venture investment industry said, "To maintain Kosdaq's symbolic status as a growth market for innovative companies, it is important to have leading firms remain," but also acknowledged, "From a company's perspective, it is inevitable to consider factors such as liquidity, institutional investment demand, and accessibility to global investors."

Jeong Dojin, Professor of Business Administration at Chung-Ang University, said, "If capital-raising costs are lower in the KOSPI than in the Kosdaq, then from a company's perspective, transferring the listing is a rational decision." He added, "It is important to accurately identify the reasons behind companies opting to move, and to develop policy incentives to encourage them to remain in Kosdaq."