The KOSDAQ will introduce a segment system next year to categorize listed companies based on their growth potential and characteristics. The Korea Exchange plans to hold its first public consultation in the fourth quarter of this year to gather market feedback, followed by regulatory revisions aimed at implementing the system in 2027.
During a session on enhancing the competitiveness of the KOSDAQ market at the 'Korea Premium Week 2026,' co-hosted by the Financial Services Commission and the Korea Exchange, Choi Ji-woo, Executive Director of the KOSDAQ Market Division, stated, "We are pushing for the introduction of a segment system that can more clearly showcase the characteristics and competitiveness of companies within KOSDAQ."
The segment system aims to create an environment where companies with growth potential and competitiveness can emerge as market leaders. It is also expected to help investors better understand the characteristics of different companies by categorizing them within the market.
According to the current proposals, KOSDAQ companies that demonstrate growth and competitiveness will be classified as 'KOSDAQ Select,' while underperforming companies will be categorized as 'Management Group.'
The Korea Exchange is also considering the 2006 restructuring of the NASDAQ market as a key reference during the design process of the segment system. Choi explained that NASDAQ evolved from being perceived as a secondary market of the New York Stock Exchange (NYSE) to establishing a market structure that aligns with the size, growth stage, and characteristics of companies, ultimately becoming a global hub for advanced technology. The KOSDAQ aims to foster the growth of innovative companies and create a foundation for nurturing market-leading firms through the introduction of the segment system.
The Korea Exchange plans to hold its first public consultation in the fourth quarter of this year to openly gather opinions on the specific design of the system. Following the consultation, discussions with relevant agencies and regulatory revisions will be conducted, with the goal of implementing the system next year. However, the exact timing and details of the implementation may change based on market feedback and consultations with relevant agencies.
Choi emphasized, "We will actively consider the opinions of various participants, including market feedback, in developing the system. Our aim is to create a market environment where innovative companies can continue to grow, and investors can more easily identify promising firms."
* This article has been translated by AI.
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