Kosdaq Promotion System Raises Pension Fund Hopes for Top Tier

The government’s plan to introduce a promotion and relegation system in the Kosdaq market has brought market segmentation and capital flows into focus. The measure is not limited to presenting a selected group of higher-quality companies. Its emphasis is on creating an investment ecosystem where index-tracking passive money and policy funds can flow more actively. As a result, expectations are rising that the Kosdaq first tier could attract long-term capital such as pension funds, while companies placed in the third tier may face tighter management and delisting standards. The policy is viewed as an effort to improve market trust and clarify investable groups. Source: mk.co.kr