Seoul, February 16: South Korea’s secondary stock market index, the KOSDAQ, has become the second-best-performing equity benchmark globally over the past month, ranking just behind the country’s main index, the KOSPI, amid fresh government measures aimed at strengthening the junior market.
KOSDAQ Rallies Over 16% in One Month
According to data compiled by Yonhap Infomax, the KOSDAQ climbed 16.45 per cent from 949.81 points on January 13 to 1,106.08 points on Friday.The strong performance placed the tech and venture-focused index ahead of several major global benchmarks. Thailand’s SET Index rose 16.05 per cent during the same period, while Turkey’s BIST 100 advanced 15.71 per cent.
KOSDAQ Outpaces U.S. Markets
The rally in South Korea’s secondary market sharply contrasted with movements in the United States.The tech-heavy Nasdaq Composite declined 4.79 per cent over the one-month period, while the S&P 500 slipped 2.07 per cent, according to the data.
KOSPI Leads Global Gains
Topping the global performance chart was the KOSPI, which surged 19.07 per cent during the cited period, reinforcing the broader strength seen in South Korea’s equity markets.Government Measures Drive Secondary Market Momentum
Market participants attributed the KOSDAQ’s continued upward trajectory to increased investments in exchange-traded funds holding companies listed on the secondary market, alongside expectations that policy focus will shift further toward supporting the junior exchange.The government has unveiled a series of initiatives to bolster the venture-heavy KOSDAQ as part of its transition toward productive finance. Authorities have pledged to expand public investments in the secondary market and tighten delisting standards to remove troubled companies that have weighed on growth.
In addition, a legislative proposal is currently under discussion at the National Assembly. Earlier this month, a ruling Democratic Party lawmaker introduced a bill to separate all KOSDAQ-related functions within the Korea Exchange into an independent subsidiary.
The proposal aims to transform the secondary market into a structure comparable to the Nasdaq Composite in the United States.
Structural Reforms Target Institutional Participation
Analysts noted that the core objective of the government’s measures is to build a structural foundation that encourages greater participation from institutional investors in the KOSDAQ market.The steps are expected to help normalize liquidity conditions and improve valuation levels within the secondary exchange, supporting its long-term development trajectory.
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