KOSDAQ Promotion-Relegation System Could Start in October, Splitting Market into Three Tiers

The government and Korea Exchange are preparing to operate a new “promotion-relegation” system for the KOSDAQ market as early as this October. The core of the plan is to divide KOSDAQ into three leagues: Premium, Standard and a management or watch group. According to the original summary, the measure is being introduced to revitalize the KOSDAQ market and would classify companies within the existing market into separate groups. Once implemented, the market’s classification framework will change, and the league to which each company belongs may become an important market reference. Detailed operating rules were not confirmed within the provided summary. Source: mk.co.kr