Is KOSDAQ the 2nd-Best Performing Global Index Amid Support Measures?
Synopsis
Discover how South Korea's KOSDAQ stock index has surged to become the second-best performer globally, driven by government initiatives aimed at revitalizing the secondary market. This article unpacks the implications of these measures and their potential impact on investors.
Key Takeaways
KOSDAQ has seen a remarkable 16.45% increase in one month.
Government initiatives are focused on revitalizing the secondary market .
The KOSPI remains the top-performing index, rising 19.07% .
Stricter delisting rules aim to improve market stability.
Potential future developments may mirror platforms like Nasdaq.
Seoul, Feb 16 (NationPress) In the past month, South Korea's KOSDAQ, which is the smaller stock index, has claimed the title of the second-best-performing stock index globally, only surpassed by the nation's primary index, the KOSPI. This rise comes as a result of governmental initiatives aimed at enhancing the secondary market, according to data released on Monday.
The KOSDAQ experienced a significant increase of 16.45 percent, moving from 949.81 points on January 13 to an impressive 1,106.08 points by Friday, based on figures from Yonhap Infomax, the financial division of Yonhap News Agency.
Following the KOSDAQ are the SET and ISE-100, the benchmark indexes for Thailand and Turkey, which saw increases of 16.05 percent and 15.71 percent, respectively, during this month-long timeframe.
In comparison, U.S. markets showed a stark contrast, with the tech-heavy Nasdaq declining by 4.79 percent and the S&P 500 decreasing by 2.07 percent over the same period.
The top-performing index worldwide was the KOSPI, which surged by 19.07 percent during the same period.
According to Lee Sung-hoon, an analyst at Kiwoom Securities, the ongoing rise of the KOSDAQ index can primarily be attributed to investments in exchange-traded funds (ETFs) that focus on companies within the secondary market. There is a prevailing expectation that the government will shift its policy focus toward the KOSDAQ.
The government has rolled out several initiatives aimed at bolstering the venture-heavy KOSDAQ as part of its plan to transition towards more productive finance.
It has pledged to enhance public investments in the secondary market while tightening delisting regulations to eliminate struggling companies, which have historically impeded growth in the junior market.
A more aggressive initiative is underway in the National Assembly.
Earlier this month, a Democratic Party lawmaker proposed legislation to transfer all KOSDAQ-related functions at the Korea Exchange, the main stock exchange operator, into a separate subsidiary.
This legislative move aims to develop the secondary market into a platform akin to Nasdaq in the United States.
Jeong Eui-hyun, an analyst from Mirae Asset Securities, commented, "The primary objective of the government's initiatives is to establish a robust framework that encourages institutional investors to engage with the KOSDAQ market."
"We believe these measures could help stabilize liquidity and the valuation of the secondary market," he added.
Point of View
Our commitment remains firm in providing insightful coverage of significant financial developments. The recent performance of the KOSDAQ reflects not just market dynamics but also the proactive measures taken by the South Korean government. It is crucial for investors to stay informed about these changes as they navigate the evolving landscape of the stock market.
NationPress
8 May 2026
Frequently Asked Questions
Why has KOSDAQ performed well recently?
The KOSDAQ's recent performance is attributed to government measures aimed at boosting the secondary market and increased investments in exchange-traded funds.
How does KOSDAQ compare to other global indexes?
Recently, KOSDAQ has been the second-best-performing index globally, only behind South Korea's KOSPI, while outperforming major U.S. indexes.
What measures is the South Korean government taking for KOSDAQ?
The government plans to increase public investments in the secondary market and tighten regulations on delisting struggling companies.
What could be the future of KOSDAQ?
With ongoing governmental support and structural changes, KOSDAQ aims to attract more institutional investors and potentially grow to rival platforms like Nasdaq.
