[Editorial Note] Why the Arrival of 'KOSDAQ’s Time' Is Welcome

Polarization has deepened in our society, from income and real estate to assets. The domestic stock market is no exception. A market expert recently told me, "Large corporations keep growing, while small and medium-sized companies are struggling. This is widening the gap in the stock market as well," expressing concern.
The Korea Securities Dealers Automated Quotations (KOSDAQ) has experienced many ups and downs. On March 10, 2000, the KOSDAQ Index hit an all-time high of 2,834.40, but less than a month later, on April 4, it plunged to 1,934.70. By September 15, just over six months after its peak, it had fallen below the 1,000 mark to 992.50.
This year, KOSDAQ has continued to underperform. While the Korea Composite Stock Price Index (KOSPI) surged 70.9%, rising from 2,398.94 at the start of the year to 4,100.05 on the 5th, KOSDAQ only climbed 34.7%, from 686.63 to 924.74. Its growth rate was less than half that of KOSPI.
As a result, the gap between KOSPI and KOSDAQ has widened further. On the 3rd of last month, KOSPI reached a record high of 4,221.87. The relative strength, calculated by dividing KOSPI by the KOSDAQ Index (914.55), hit 4.62, marking the largest gap ever.
From an investor’s perspective, it is understandable to hesitate before investing in small and medium-sized companies or KOSDAQ. We live in a rapidly changing world where the future is unpredictable, and the greater the volatility, the more people seek stable investment destinations.
However, the mood in the KOSDAQ market has shifted noticeably in December. This month, the average daily trading volume in KOSDAQ reached 11.3946 trillion won, surpassing the 10 trillion won mark for the first time this year. On the 1st, KOSDAQ’s total trading volume was 11.8161 trillion won, exceeding that of KOSPI (11.8056 trillion won).
Market capitalization is also on the verge of entering the '500 trillion won era' for the first time. On the 4th, it surpassed 500 trillion won, and on the 5th, it set a new closing record at 499.5958 trillion won.
It is fortunate that the KOSDAQ market, which had long been stagnant due to lack of attention, is finally showing signs of vitality. As KOSDAQ becomes more active, the Initial Public Offering (IPO) market will revive, and a revitalized IPO market will lead to increased venture investment. This expansion of venture investment will further boost capital inflow into KOSDAQ, creating a virtuous cycle. It could be an opportunity to reduce polarization and enhance diversity in our market. I hope that we can steadily enjoy 'KOSDAQ’s Time' and see it thrive for the long term.
jisseo@fnnews.com Reporter