Standing at the front line of the global venture ecosystem and watching countless innovative entrepreneurs wage their uphill battles, one question continually weighs on my mind: What kind of soil does our capital market provide for so-called "tenbaggers" — companies whose share prices rise more than tenfold, proving their disruptive innovation?
The stark contrast in how Nasdaq and Kosdaq treat their tenbaggers lays bare the structural gap between the two capital markets. It is time to move beyond mere criticism of the phenomenon and contemplate forward-looking alternatives for how the Korea Exchange (KRX) and our market must qualitatively evolve.
◇ Nasdaq: Proving Innovation by Defeating Short Sellers
On the U.S. Nasdaq, the birth of a tenbagger often marks a leap into the ranks of global blue chips. The trajectories of Tesla and Nvidia attest to this.
Tesla, too, was once among the most heavily shorted companies on Wall Street. But once it proved the electric vehicle paradigm in reality, the tables turned completely. Short sellers suffered a "short squeeze," retreating with massive losses, while Tesla overcame the crisis to soar into a mega-corporation.
What truly deserves attention is what came next. The moment growth is proven, global asset management giants such as Vanguard and BlackRock deploy massive "patient capital," positioning themselves as steadfast shareholders and defensive shields. A virtuous cycle — where proving innovation earns scale-up support from mega-capital, propelling a company to become a global champion — is the true strength of Nasdaq.
◇ Kosdaq: Rumor Mills and Anonymous Cartels at the Inflection Point of Innovation
By contrast, becoming a tenbagger on today's Kosdaq is less a cause for celebration than the lighting of a harsh warning signal. The very moment a company's value explodes, it is more likely to become a target for short-term profit seekers than to attract long-term capital willing to be a partner in innovation.
Whenever a company attempts to prove its fundamentals through global orders or clinical success, a flood of sell reports emerges fueling overvaluation debates. Furthermore, suspicions are rising that forces colluding with so-called "black-haired foreigners" systematically spread anonymous smear campaigns through messaging apps and online communities to engineer artificial stock-price crashes.
Persistent suspicions of cartel activity also circulate in and around Yeouido's securities district, alleging that certain brokerages and asset managers operate covertly for "short plays." Regardless of whether any specific institution is engaged in direct illegal conduct, the abnormal trading ecosystem that singles out tenbaggers for concentrated attack is severely eroding the trust of entrepreneurs and investors alike.
◇ Three Proposals for Elevating the Quality of Short Selling
The legitimate functions of normal short selling — price discovery and liquidity provision — cannot be denied. But a "market that punishes growth" has no future. For Kosdaq to rise above being a peripheral market that envies Nasdaq and become an attractive platform that global innovators actively seek out, the following approaches are imperative.
First, a "zero-tolerance principle" toward malicious market manipulation and the enhancement of AI-based surveillance.
This is not a one-dimensional call to simply ban short selling. For market disruption combining illegal naked short selling with rumor circulation, the Korea Exchange and financial authorities must deploy cutting-edge AI-driven data monitoring systems to detect violations in real time. A powerful punitive damages regime — one that can permanently expel offenders from the market on a single violation — must also be established to level the tilted playing field.
Second, fostering "Korean-style long-term patient capital" to serve as a shield for innovation.
Like BlackRock and Vanguard on Nasdaq, Kosdaq tenbaggers need reliable allies so they are not shaken by external malicious attacks. Bold institutional incentives — such as tax benefits and improved evaluation metrics — must be offered so that major pension funds including the National Pension Service and large institutional investors can commit to long-term investment in premier Kosdaq innovators.
Third, scale-up support through the creation of a "K-Unicorn and Tenbagger Blue-Chip Track."
A dedicated blue-chip track — tentatively named the "K-Blue Chip Segment" — should be established to protect and support Kosdaq tenbaggers that have demonstrated exceptional performance. Companies included in this track should receive direct exchange-level support for tailored IR meetings with top-tier global institutional investors, along with one-stop services for English-language disclosure translation and global PR, actively channeling foreign capital into the market.
◇ Ecosystem Innovation and Resolving the "Korea & Kosdaq Discount"
Ultimately, the essence is a "philosophy for ecosystem innovation." It is also a core solution to the chronic "Korea & Kosdaq discount." Alongside opaque corporate governance, the entrenched short-termism pervading the market and deep distrust of short-selling cartels have long been identified as key causes of the Korean stock market's chronic undervaluation. The inflow of patient capital and the protective blue-chip track proposed above go beyond simply defending a handful of companies — they are the key to attracting long-term global investment capital into our market.
Whether our capital market becomes a hunting ground that tramples the innovation bought with entrepreneurs' blood and sweat, or a springboard to a greater world, depends on our choice. Through thorough institutional reform and the inflow of long-term capital, we must fundamentally improve the constitution of Korea's capital market. I look forward to the day when a second Tesla or a second Nvidia — one that will drive the Korean economy — is born on Kosdaq.
He is
· B.A. in Political Science and International Relations, Korea University
· Former newspaper reporter
· Former IPO division, Shinyoung Securities
· Former overseas investment, SK E&S
· Former investment manager, SV Investment
· Current CEO, Gravity Ventures
