Three industry associations on Thursday issued a joint appeal urging blue-chip Kosdaq-listed companies to remain on the tech-heavy bourse rather than transfer to the main Kospi market.
The Korea Venture Business Association, the Kosdaq Listed Companies Association and the Korean Venture Capital Association said in the statement that "Kosdaq is not simply a fundraising market, but a platform where innovative and venture companies take off." The associations added, "When leading companies remain in the market and continue to grow, investor confidence is maintained, and a virtuous cycle is formed in which subsequent technology companies take on challenges and venture capital continues to flow in."
"Conversely, the departure of blue-chip companies inevitably weakens the market's investment appeal and trust base, and has a negative impact on the innovation ecosystem as a whole," the associations argued.
The associations said, "We earnestly request that blue-chip Kosdaq companies remain in the market and continue their sustainable growth." They added, "Together with relevant institutions, we will do our best through practical efforts such as expanding institutional investor participation, broadening the base for long-term capital inflows and differentiating regulations, so that remaining on Kosdaq can be a reasonable choice for companies."
The joint appeal came after Alteogen (196170.KQ), one of Kosdaq's top companies by market capitalization, decided to transfer its listing to the Kospi market. Alteogen is a biotech venture firm ranked third on Kosdaq by market cap, developing biosimilars, or generic versions of patent-expired biologic drugs. The company decided last year to move to the Kospi to create a stable investment environment and enhance corporate value.
