Major KOSDAQ-listed companies continue pursuing transfers to the KOSPI market despite ongoing government support measures for KOSDAQ, with biotech leader Alteogen emerging as the next likely candidate after approving the move at a shareholder meeting in December. The exodus follows a 30-year pattern where large companies including Kakao, NAVER, NCSOFT, SK Ocean Plant, POSCO DX, and L&F grew on KOSDAQ before transferring to KOSPI for higher valuations and stable passive fund inflows. Companies seek KOSPI listing to maximize shareholder value through inclusion in major indices like KOSPI200, though the ongoing departures reinforce KOSDAQ's reputation as a secondary market rather than a final destination for innovative firms.
Alteogen Approves KOSPI Transfer at December Shareholder Meeting
Alteogen held an extraordinary shareholder meeting in December and approved a resolution to transfer listing to KOSPI, according to financial investment industry sources. The company plans to enter the securities market and gain inclusion in major indices such as KOSPI200, leveraging its proprietary technology platform that has secured large-scale technology transfer contracts with global pharmaceutical companies.
Ecoprobm Withdraws KOSPI Application After 2024 Pursuit
Ecoprobm, which competed with Alteogen for KOSDAQ leadership, pursued KOSPI transfer in 2024 but withdrew the listing application last year citing performance deterioration from electric vehicle demand stagnation and market conditions. The battery materials company's situation remains complex as it previously sought to move markets but reversed course.
HLB Transfer Momentum Weakens Following FDA Rejection
HLB's KOSPI transfer momentum has significantly diminished after the U.S. Food and Drug Administration (FDA) rejected approval for its liver cancer drug Rivoceranib. The company had planned to maximize corporate value by securing FDA approval before transferring to KOSPI, but the repeated rejection has made immediate transfer discussions virtually impossible. HLB now faces drug approval reapplication and share price recovery as top priorities, with KOSPI transfer likely to face long-term delays.
Cosmecca Korea Fails Preliminary Review Due to Governance Issues
Cosmecca Korea filed for preliminary review for KOSPI transfer but failed to pass Korea Exchange requirements due to governance problems including concentrated authority within the owner family.
Industry Officials Cite Need for Structural Market Changes
Companies choose KOSPI over KOSDAQ for higher corporate value recognition and stable passive fund inflows that maximize shareholder value. However, the repeated cycle of major companies growing on KOSDAQ then departing for KOSPI has left KOSDAQ unable to shed its reputation as a "KOSPI second league." A financial investment industry official stated, "For the KOSDAQ market not to remain merely an 'incubator' for innovative companies, there must be clear merits for large-cap stocks to stay," adding, "Since the fundamental reason for KOSPI transfer lies in global passive fund inflows and share price stability, fundamental measures to change the market structure itself must accompany policies so that large innovative companies with increased scale can make KOSDAQ their final destination."
FAQ
Q: What did Alteogen approve at its December shareholder meeting?
A: Alteogen held an extraordinary shareholder meeting in December and approved a resolution to transfer listing to KOSPI.
Q: Why did Ecoprobm withdraw its KOSPI transfer application?
A: Ecoprobm withdrew the listing application last year citing performance deterioration from electric vehicle demand stagnation and market conditions, after pursuing KOSPI transfer in 2024.
Q: Why do KOSDAQ companies transfer to KOSPI?
A: Companies choose KOSPI for higher corporate value recognition and stable passive fund inflows through inclusion in major indices like KOSPI200, which maximizes shareholder value.
