KOSDAQ without a large-cap stock¡¦ ``2nd league¡¯ downfall in concern

[ Kim Min-soo minsu@ ] | 2017-08-18 10:26:48
Celltrion, the No.1 market cap on KOSDAQ, is now holding a temporary shareholders` meeting for KOSPI transfer. Thus, concerns are mounting that the KOSDAQ market, which has played a role as a bank for venture and small and medium enterprises.

Celltrion stated on its website on August 16 that it has a commercial law requirement to hold temporary shareholders` meeting related to the KOSPI transfer.

Earlier, Celltrion`s minority shareholders collected more than 3% of the company`s stake in the company, Celltrion plans to approve the board of directors `approval for a resolution to convene a temporary shareholders meeting as the requirements for meeting the shareholders` meeting have been expanded. Celltrion`s stake in the minority stake is over 66%. If the minority shareholders decide to transfer the KOSPI, the KOSPI transfer will be confirmed. Currently, minority shareholders are actively promoting the KOSPI transfer by delegating voting rights of shareholders who cannot participate in the shareholders` meeting to the managing director or acquaintances.

The KOSDAQ market is now in a great shock due to the subsequent deviations from the KOSDAQ-listed companies. It has been pointed out that the identity of the market centered on technology stocks is seriously undermined, and the remaining KOSDAQ listed companies are inevitably affected by the market supply and demand.

Meanwhile, the KOSDAQ market was originally set up to benchmark the US NASDAQ to encourage venture capitalists and small and medium-sized enterprises, which are technically difficult to attract investment, to raise funds smoothly. In particular, during the 2000s, it played a big role in the IT and venture industry boom. However, Naver, NCsoft, and Kakao are now losing their identities as the so-called KOSDAQ large cap stocks deviate from each other.

LG Uplus, Naver, Shinsegae Food, Hana Tour, and East and West Korea`s leading KOSDAQ companies moved to KOSPI in addition to Kakao, Asiana Airlines. If KOSDAQ continues to break out of the chain of companies, KOSDAQ will be difficult to strip the reputation of `second division league`.

Although Moon Jae-in government is focusing on the KOSDAQ market with its emphasis on venture and mid-term activation, it is responding that the market is losing momentum as more outsiders are increasing.

In fact, the KOSPI index has surged 16.6% this year. However, the KOSDAQ index, which has relatively high medium-term ventures, only climbed 1.6%. A KOSDAQ official said, "It is a problem in terms of KOSDAQ market identity that a major shareholder is going to leave.¡± He also added, "We are still watching it because only a temporary shareholders` meeting has been confirmed at the request of minority shareholders."

The Korea Exchange is now doing a full-fledged effort to keep Celltrion`s KOSDAQ. Concerns are mounting that it will be difficult to expect KOSDAQ companies to move to Celltrion in the KOSPI market. A senior official of the KOSDAQ stated, "Celltrion knows that it wants to stay as a KOSDAQ President rather than KOSPI. We are listening to what the minority shareholders want with the company and discussing what is acceptable."

By Kim Min-soo minsu@dt.co.kr



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