The Korea Venture Capital Association (KVCA), the KOSDAQ Association, and the Korea Venture Business Association (KOVA) have expressed concern over the recent wave of blue-chip KOSDAQ companies moving to the main KOSPI market, urging leading innovation and venture firms to remain on KOSDAQ. The appeal is widely interpreted as a public effort to persuade biotech firm Alteogen (196170.KQ), which is currently pursuing a transfer listing to KOSPI.
The three organizations issued a joint appeal Thursday, saying, "KOSDAQ is not merely a fundraising market but a platform where innovative and venture companies can take off." They added, "When leading companies remain in the market and continue to grow, investor trust is maintained, and a virtuous cycle is formed in which subsequent technology firms take on challenges and venture capital continues to flow in."
"The departure of blue-chip companies inevitably weakens the market's investment appeal and trust base, and has negative effects across the entire innovation ecosystem," the groups said. "Since companies that have grown on KOSDAQ have developed together with the market, their remaining on KOSDAQ carries significant meaning in terms of market sustainability and the preservation of the innovation ecosystem."
The three organizations said they would also actively push for institutional improvements for blue-chip KOSDAQ companies together with related agencies. The plan is to support companies so that staying on KOSDAQ becomes a rational choice, through expanded institutional investor participation, a broader base for long-term capital inflows, and differentiated regulations.
According to the industry, the KOSDAQ Association, KOVA, and KVCA have also recently sent an official letter to Alteogen asking the company to reconsider its decision to transfer to KOSPI.
When Celltrion (068270.KS), once the largest company by market capitalization on KOSDAQ, moved to KOSPI in the past, there were also efforts to persuade the firm to stay. However, the industry views the current case as more significant. While Celltrion entered the stock market through a backdoor listing, Alteogen is seen as a flagship biotech firm that grew through the technology special listing system, giving it greater symbolic importance within the KOSDAQ market.
