Means to Invigorate KOSDAQ Market

New KOSDAQ Headquarters Chief Park to make sure KOSDAQ is seen as equal to KOSPI

"The KOSDAQ market is a stage for small start-up firms centered around technology and I will try to reestablish the identity and difference of the market, as one has to wear clothes that fit or he would not be able to function to the best of his ability, in order to show that the KOSPI and KOSDAQ markets should be on the same horizon, not seen from a vertical perspective, as it is being perceived now," said Park Sang-jo, head of the KOSDAQ market headquarters.
He said he will try to push three major projects until the tenure of his new job runs out in two years. He will enforce a tougher screening of financially unsound companies listed on the market and delist them if they are found not financially fit. He said he wishes to have SME start-ups and green growth companies listed on the market to the extent that the market is centered on technology shares in a bid to redefine its identity.
He will also try to expand the role of the market by spurring its activities so that listed firms can easily secure funds. Park also said he will steer the market to go easy on firms with great potential for growth and a high-level of technologies in the areas of operating profit and ROE and instead, evaluate them more on their technology and growth potential. Park said he is also willing to hire outside firms to evaluate the technologies of new growth engine firms and the procedure for listing on the KOSDAQ market as well as consult with the financial authorities to ensure stable management of the listed firms and the market.
The new top official of the start-up stock market said it is too early to say the market is overheated as most of the newly listed firms in recent months conducted their IPOs when the market was in a downturn and the recent invigoration of the market made the new issues popular among investors. If a number of shares rise without plausible reasons, due to factors not related to performance, the market will strengthen the checks on those stocks with concentrated market monitoring, Park said.
He said the KOSDAQ will consider various factors before classifying the shares' business sectors. At the moment, the market has been studying such factors as capital ratios, market value, net profit and sales revenue, along with growth potential, governance structure and the degree of damage done to the soundness of market.
In the area of corporate governance, the factors to be considered will include the presence of outside directors and auditors and a concentrated voting system, and other factors such as those that can hurt the reputation of the market including irregularities, the commitment of acts against public notices and subjectivity for the suspension of listing. The market will consult with the financial authorities before making the new regulations public. nw

Director Park Sang-jo of the KOSDAQ Market Headquarter Dep't of the Korea Exchange.