KOSDAQ trading volume and value plunged to their lowest levels since 2020 this month, with strengthened delisting requirements intensifying market anxiety. On the 9th, KOSDAQ trading volume recorded 442.79 million shares, the lowest since August 2011, according to Korea Exchange (KRX) data released on the 22nd. The liquidity drought stems from multiple factors including the launch of single-stock leveraged ETFs for Samsung Electronics and SK Hynix, which diverted trading activity from the broader KOSDAQ market. New delisting rules effective this month require companies with market capitalization below 20 billion won or stock prices below 1,000 won for 30 consecutive trading days to face potential delisting after management stock designation, creating widespread concern as the number of companies meeting these criteria surged from 47 in January 2025 to over 200 recently.
KOSDAQ Trading Volume Hits 15-Year Low
KOSDAQ trading volume declined sharply this month after reaching 1 billion shares at the beginning of the year and briefly rising to 1.9 billion shares in April. Volume fell to the 500 million share range this month, with trading on the 9th, 15th, 10th, and 21st all dropping below the 500 million share threshold. The 442.79 million shares recorded on the 9th marked the first time trading volume fell to the 400 million share range since September 2017. All 12 lowest trading days since 2020 occurred in July this year, according to financial investment industry data released on the 22nd.
Trading Value Drops to 4 Trillion Won Range
Trading value decreased from nearly 12 trillion won at the beginning of this month to 4.62 trillion won on the 21st, marking the first time trading value fell to the 4.6 trillion won range since November 2019. The market recorded trading value in the 4 trillion won range on the 15th before recovering to the 5 trillion won range, escaping the 4 trillion won range after four trading days. The liquidity decline accelerated following the launch of single-stock leveraged ETFs for Samsung Electronics and SK Hynix, according to industry observers.
Strengthened Delisting Rules Increase Market Pressure
The number of KOSDAQ companies with market capitalization below 20 billion won increased from 47 in January 2025 to over 200 recently, according to KOSDAQ Association data. A KOSDAQ industry official stated that the market reacts to delisting possibilities before company fundamentals, with anxiety driving selling pressure and creating a vicious cycle of further price declines. The official noted that this psychological factor amplifies the downward momentum in stock prices.
Government Activation Measures Show Limited Impact
Government measures announced since the beginning of this year include customized technology special listing introduction, KOSDAQ promotion and demotion system establishment, KOSDAQ active ETF listing, and active investment from policy funds such as the National Growth Fund. These measures are either implemented or scheduled for implementation. A securities industry official stated that the government's approach to single-stock leveraged ETF supplementary measures appears relaxed, with application scheduled for next month or year-end rather than immediate implementation. The official added that while long-term planning is necessary, emergency measures with immediate effects are also needed for the current KOSDAQ situation.
FAQ
What caused KOSDAQ stocks trading volume to drop to a 15-year low?
KOSDAQ trading volume fell to 442.79 million shares on the 9th, the lowest since August 2011, due to multiple factors including the launch of single-stock leveraged ETFs for Samsung Electronics and SK Hynix and strengthened delisting requirements effective this month.
How do the new KOSDAQ delisting rules affect listed companies?
The new rules require companies with market capitalization below 20 billion won or stock prices below 1,000 won for 30 consecutive trading days to face potential delisting after management stock designation. The number of companies meeting these criteria increased from 47 in January 2025 to over 200 recently, according to KOSDAQ Association data.
