Kosdaq Performance-Based Review May Challenge Its ‘Gambling’ Image

The Kosdaq market is drawing attention as criticism continues that many companies near the top by market capitalization are overvalued despite weak earnings foundations. A possible shift is being signaled from market-cap-centered assessment toward evaluation focused more on actual performance. Companies whose earnings have not been sufficiently verified have often risen into the upper ranks by market value and entered benchmark indexes, a pattern long cited as a chronic issue for Kosdaq. This structure has been blamed for reinforcing the negative perception of Kosdaq as a “gambling board.” If performance-based evaluation spreads, it could affect the makeup of top-ranked stocks and market trust. Source: mk.co.kr