KOSDAQ Promotion System Raises Hopes for Pension Fund Inflows to Top Tier

The government is moving to introduce a promotion and relegation system for the KOSDAQ market, separating company groups while encouraging investment inflows. The plan goes beyond simply identifying and displaying stronger companies. Its focus is to build an investment ecosystem where index-tracking passive funds and policy funds can flow more actively. The top KOSDAQ tier is expected to draw interest from long-term capital such as pension funds, while third-tier companies may be subject to management measures or delisting. If established, the system could change how companies are assessed and how capital is allocated within KOSDAQ. Source: mk.co.kr