[DigitalToday reporter Oh Sang-yup (오상엽)] KOSDAQ continues to be left behind. The KOSPI has seen bigger swings after topping the 9,000 level, but it is rebounding led by large semiconductor stocks. KOSDAQ remains below 1,000 and has not shaken off the lagging trend.

The KOSPI ended on June 24 up 267.18 points, or 3.26 percent, at 8,471.02. After a steep fall in the previous session, buying by retail and institutional investors helped it recover the 8,400 level. Samsung Electronics surged more than 9 percent to regain the top spot by market value, and SK Hynix also ended higher.

KOSDAQ also closed higher on the day, up 17.79 points, or 2.00 percent, at 909.31. It was a one-day rebound after sliding to the 800 level on June 23. It has stayed below 1,000 for four straight sessions since June 19.

KOSDAQ's lag is also seen in its share of market value. KOSDAQ's share of the combined market capitalisation of KOSPI and KOSDAQ has recently fallen to the 6 percent range. KOSDAQ's share had risen to the 12 percent range earlier this year, but it shrank quickly as a rally in large KOSPI stocks continued.

Market participants cite limited inflows of foreign and institutional funds, low market trust and concentration in large KOSPI stocks as reasons for KOSDAQ's weakness. Large semiconductor stocks such as Samsung Electronics and SK Hynix have absorbed demand in the domestic stock market. That has relatively weakened investor appetite for mid- and small-cap growth stocks such as information technology, biotech and secondary batteries, an analysis says.

Delisting requirements for penny stocks, set to take effect in July, are also expected to be a variable for KOSDAQ flows. Under delisting reform measures announced by the Financial Services Commission and the Korea Exchange, stocks priced below 1,000 won will be included in delisting conditions from July 1.

They will not be delisted immediately. If a stock stays below 1,000 won for 30 consecutive sessions, it is designated an issue under administration. It is then delisted if it fails to recover to at least 1,000 won for 45 consecutive sessions during the following 90 sessions.

In the short term, investor sentiment could weaken, especially for stocks with fragile financial structures or poor trading. Others say that if the cleanup of weak companies proceeds, it could help restore trust in KOSDAQ and draw in institutional funds.

The Korea Exchange is also working to improve KOSDAQ. The exchange will hold a ceremony on July 1 to mark the 30th anniversary of the launch of the KOSDAQ market. From the same day through July 3, it will hold 'KOSDAQ CONNECT 2026' with the Korea IR Council and the KOSDAQ-listed Companies Association.

About 100 KOSDAQ-listed companies, institutional investors, venture capital firms and the securities industry will take part in the event. It will include investor relations sessions, expert lectures by sector and seminars.

Discussions are also continuing on revamping KOSDAQ segments that classify market tiers. The exchange is reviewing a plan to divide the top KOSDAQ group into 'Select' and the general group into 'Standard'. It reflects criticism that the existing 'Premium' label could encourage ranking among companies.

The venture and VC industry, however, is concerned that the structure itself of dividing stocks into upper and lower groups could create a stigma effect, regardless of the name.

The exchange is also pursuing efforts to attract overseas companies. At 'BIO USA 2026' held in San Diego on June 23 local time, it introduced KOSDAQ listing procedures and the technology special listing programme to executives and employees of global biotech companies.

An industry official said, "The criteria for pushing penny stocks out could weigh on KOSDAQ investor sentiment in the short term, but it is a necessary process to restore market trust." The official added, "For policy effects to appear, an environment also needs to be 마련돼야 한다 in which funds can move to quality growth companies after weak companies are cleared out."