The Financial Services Commission (FSC) and Korea Exchange (KRX) have unveiled plans to overhaul the governance structure of the KOSDAQ market, in a move to boost the KOSDAQ’s role as a capital market for technology-based small- and medium-sized enterprises (SMEs) and venture businesses. The KOSDAQ Market Committee will be separated from the KRX Board of Directors, becoming an independent organization equivalent to the Market Oversight Commission. This is in response to criticism that the KOSDAQ market has lost its dynamic nature and has become like the KOSPI market due to its lack of independence. In addition, the KOSDAQ Market Committee will include more members from the SMEs and venture businesses, in order to reinforce the professional and public nature of the committee. Meanwhile, the FSC is planning to announce ‘Comprehensive Measures to Boost Corporate Listing’ by the end of the year, which include plans to lower the threshold to be listed in the KOSDAQ market.

* Source : Ministry of Strategy and Finance and Korea Development Institute, Economic Bulletin Vol.35 No.8 (August 2013).
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