[Edaily Reporter Park Soon-yeop] The KOSDAQ index has fallen more than 10% since its late-April peak, showing a divergent trend from the KOSPI, which is hovering around the 9,000 mark. This is due to weakened investor sentiment as selling pressure spread across growth stocks in general, following weakness in large-cap biotech and healthcare stocks and leading secondary battery stocks. While some AI semiconductor and robotics-related stocks held up well, the rally was limited to a few themes and failed to turn around the market sentiment.
According to MP Doctor on the 3rd, the KOSDAQ index fell 200.15 points from 1,226.18 on April 27—its year-to-date closing high—to 1,026.03 on the 2nd. This represents a decline of 16.32%. During the same period, 1,470 out of 1,816 comparable KOSDAQ stocks fell, meaning that stock prices dropped for about 8 out of every 10 stocks. The median return also stood at around -20%, indicating that the perceived decline in individual stocks was greater than the index’s drop.
Substantial rebounds were rare. Out of the 24 trading days from the peak on April 27 through June 2, the KOSDAQ index rose on only six days. Even then, four of those days saw gains of less than 1%, and the only days with gains in the 4% range were May 21 and 22, which reflected expectations surrounding the launch of the National Growth Fund. Excluding policy-driven events, the KOSDAQ has essentially continued its downward trend without a clear rebound since reaching its peak.

The decline was exacerbated by the simultaneous slump in the sectors leading the KOSDAQ market. Top-market-cap biotech stocks such as #ABLBio, #SamchundangPharma, #RigacemBio, #CareGen, #Boronoi, and #HLB fell one after another, while #Ecopro also dropped by over 18% during the same period, resulting in a loss of approximately 4 trillion won in market capitalization. As both biotech and secondary batteries lost momentum simultaneously, the void left by leading stocks in the KOSDAQ market widened.
Within the semiconductor and robotics sectors, performance varied significantly by stock. Traditional equipment and component stocks such as #Rino Industrial, #Wonik IPS, #Solbrain, #IOTechnics, and #HPSP showed weakness, but #Juseong Engineering, #Jeju Semiconductor, #Padu, #Simtek and #Doosan Tesna, as well as robotics stocks like #Rainbow Robotics, #Robostar, and #Robotis, held up well. However, as buying interest was concentrated on a few specific themes, it was insufficient to reverse the overall downward trend in the KOSDAQ market.
The key focus for the second half of the year is whether the market can regain momentum for a rebound following the correction. Analysts in the securities industry suggest that a selective rebound within the KOSDAQ market is possible if the likelihood of policy funds and institutional capital inflows increases, especially as valuation pressures have eased. Factors expected to help restore the KOSDAQ’s relative strength include policy changes, the National Growth Fund, and diversification of supply and demand.
First, there is a consensus that policies to improve the KOSDAQ market’s fundamentals are becoming more concrete than in the past. This is because the system is being designed to simultaneously promote listings and strengthen delisting procedures, while also encouraging the inflow of long-term capital. Discussions on tightening delisting criteria and introducing a promotion-relegation system for KOSDAQ are seen as mechanisms to weed out underperforming companies and boost market confidence by focusing on high-quality firms.
The National Growth Fund is also a key variable for supply and demand in the second half of the year. Of the 150 trillion won in policy funds to be raised over five years, the amount expected to flow into the KOSDAQ market—including both direct and indirect support—is estimated at approximately 10.4 trillion won over the five-year period. The sectors eligible for support also overlap with growth industries where KOSDAQ companies hold a significant share, such as AI, semiconductors, biotech and vaccines, robotics, secondary batteries, future mobility, and defense.
Changes in institutional investor activity are also drawing attention. Although the KOSDAQ is a market with a high proportion of retail investors, participation by foreign and institutional investors has been increasing recently. So far this year, while retail investors have net sold 8 trillion won worth of KOSDAQ stocks, foreign investors have net bought over 5 trillion won, and net buying by foreign investors and pension funds of KOSDAQ exchange-traded funds (ETFs) is also on the rise. The fact that a plan is being pursued to partially reflect the KOSDAQ 150 Index in fund management evaluation criteria is also cited as a positive factor for medium- to long-term supply and demand.
Yoon Jae-hong, an analyst at Mirae Asset Securities, said, “Although the KOSDAQ has recently been lagging behind the KOSPI, there are signs that suggest a recovery in relative strength in the second half of the year.” He added, “The market supply-demand environment could change as policy changes, the National Growth Fund, and institutional capital inflows converge.” He predicted, “In the second half, the leading trends in semiconductors and machinery will continue, and the healthcare sector, which underperformed in the first half, may also seek opportunities for a turnaround.”