Venture Industry Urges Immediate Revitalization of Kosdaq, Calls for Listing System and Investment Environment Reforms

Joint Press Conference by Venture Companies, Kosdaq, and VC Associations
Proposals for Structural Improvements Including Strengthened Responsibilities for Underwriters
Need for Expanded National Pension Investment and Long-Term Investment Incentives
Suggestion to Create a 30 Trillion Won Kosdaq Revitalization Fund

Three major venture organizations?the Korea Venture Business Association, the Kosdaq Association, and the Korea Venture Capital Association?have jointly called on the government to develop a roadmap for achieving the "Kosdaq 3000 era." As the government has presented a blueprint for the "KOSPI 5000 era," these organizations believe that bold policy innovation is urgently needed for Kosdaq, which serves as the core platform for venture companies and innovation capital, to fulfill its role.

On July 30, at the Korea Federation of SMEs in Yeouido, Seoul, the three organizations held a press conference titled "Policy Proposals for Revitalizing the Kosdaq Market." They proposed three key policy pillars: ▲ market-driven structural improvements to Kosdaq, ▲ expanding incentives for institutional and long-term investors, and ▲ establishing a Kosdaq revitalization fund.

The three organizations urged the introduction of a responsible listing structure and a shift to a quality-focused review system as part of market-driven structural improvements. They argued that the responsibilities and roles of underwriters should be strengthened, and that the delisting system and restructuring process should be overhauled to restore the healthy dynamism of "high birth and high death" (Dasandasa) in the market.

The Korea Venture Business Association, KOSDAQ Association, and Korea Venture Capital Association jointly held a policy proposal press conference to revitalize the KOSDAQ market on the 30th at the Korea Federation of SMEs in Yeouido, Seoul. From the left, Byungjun Song, President of the Korea Venture Business Association; Donghun Lee, President of the KOSDAQ Association; Hakgyun Kim, President of the Korea Venture Capital Association. Korea Venture Business Association Photo by Venture Business Association

They also called for policies to attract institutional and long-term investors. In particular, they suggested that the National Pension Service should increase its investment in Kosdaq in proportion to Kosdaq’s share of total market capitalization, and that tax incentives such as reductions in dividend income tax for long-term investors should be strengthened.

Additionally, they proposed creating a "Kosdaq Revitalization Fund" worth 10 trillion won annually for three years, totaling 30 trillion won, to promote a structural shift centered on institutional investors. They recommended that the government and policy financial institutions provide initial capital, while encouraging greater private sector participation to supply practical liquidity. The aim is for the Kosdaq market to serve as a conduit for venture and innovative companies to access risk capital, supported by appropriate policy measures.

Song Byungjun, President of the Korea Venture Business Association, stated, "We hope the government will present a policy roadmap so that the Kosdaq market can reclaim its identity as a 'growth stock-centered market' that assigns a premium to companies’ growth potential, technological capabilities, and other intangible assets."

Lee Donghoon, President of the Kosdaq Association, said, "For Korea’s economy to achieve innovative growth, the growth of Kosdaq-listed companies and the revitalization of the Kosdaq market are prerequisite tasks." He added, "Institutional improvements are needed to encourage greater investment in the Kosdaq market by institutional investors such as the National Pension Service, as well as to promote long-term investment by individual investors." He further emphasized, "Policy efforts are also needed to invigorate entrepreneurship by improving the business succession system and introducing the business judgment rule into commercial law."

Kim Hakgyun, President of the Korea Venture Capital Association, said, "In order for startups to grow into global innovation companies and drive national economic growth, it is essential for the risk capital market to play a role similar to that of the US Nasdaq." He added, "We hope that all relevant ministries, including the Ministry of SMEs and Startups and the Financial Services Commission, will participate in discussions so that industry opinions can be fully reflected."