KOSDAQ Promotion-Relegation System May Start in October, Creating Three Market Leagues

South Korea’s government and Korea Exchange are expected to launch a new promotion-relegation system for the KOSDAQ market as early as October this year. According to Maeil Business Newspaper, mk.co.kr, the plan would divide KOSDAQ into three leagues: Premium, Standard and a management group. The core change is a shift away from treating KOSDAQ as one undifferentiated market toward a structure that classifies companies by league. The government and the exchange are pursuing the system as part of efforts to revive the KOSDAQ market. Detailed operating standards and company classifications are expected to draw market attention as the plan moves toward implementation. Source: mk.co.kr