According to the financial investment industry on the 22nd, Alteogen Inc. announced on the 16th that its board of directors had recently decided to temporarily postpone its plan to move its listing to the KOSPI and remain on the KOSDAQ. Previously, industry groups such as the KOSDAQ Association had issued a public appeal to Alteogen Inc., urging it to “stay on the KOSDAQ,” out of concern that a move to the KOSPI would leave a void among KOSDAQ’s blue-chip stocks and lead to a contraction of the venture ecosystem.
After comprehensively reviewing changes in the capital market environment, recent policies to revitalize the KOSDAQ market being promoted by the government and the Korea Exchange, and the company’s growth strategy, Alteogen Inc. determined that remaining on the KOSDAQ for the time being is more conducive to enhancing corporate value and maximizing shareholder returns.
The company explained, “According to our internal analysis, Alteogen Inc.’s expected weighting upon inclusion in the KOSPI 200 would be approximately 0.3%, which is about 69% lower than the estimate at the time of the 2025 board resolution.” It added, “External agency analyses also projected a net outflow of approximately 360 billion won when comparing passive fund flows, such as ETFs (exchange-traded funds), in the event of a move to the KOSPI.”
The company further noted, “Recent reports from securities firms have also assessed that remaining on the KOSDAQ is a more reasonable decision at this point, considering supply and demand dynamics and the overall market environment.” Taking these factors into account, it can be interpreted that the company has concluded it is more rational to continue its growth story on the KOSDAQ.
From the KOSDAQ market’s perspective, this move prevents the departure of top-tier growth stocks and helps avoid a shock to the index. The KOSDAQ, which had risen to the “1,000-point mark,” has plummeted to the 750 level based on today’s closing price. The KOSDAQ market is currently in a state of devastation across the board for growth stocks, including biotech, and while there were significant concerns that the transfer of top-market-cap stocks like Alteogen Inc. could trigger further declines, the immediate pressure has been alleviated.
The KOSDAQ Association stated, “Alteogen Inc. is an innovative company representing Korea’s biotech industry and a symbolic firm that has enhanced the growth and standing of the KOSDAQ market through its outstanding R&D capabilities and global competitiveness.” It added, “The decision to continue sharing the fruits of growth with investors in the KOSDAQ market is a highly significant one for our capital market and the ecosystem of innovative companies.”
The association further emphasized, “We will continue to push for institutional improvements and policy recommendations to enhance the competitiveness of the KOSDAQ market and foster a business-friendly market environment.”
Furthermore, this decision is expected to serve as a catalyst for the introduction of the KOSDAQ segment system (promotion and demotion mechanism)—currently under discussion by the government and the market—as well as for the roadmap to expand KOSDAQ investments by pension funds and institutional investors. Since a leading KOSDAQ stock remains on the market, this move could help bolster policy efforts to increase the weight of KOSDAQ in pension fund benchmarks and attract index-tracking funds.
Lee Geon-jae, Head of the KOSDAQ Research Center at IBK Investment & Securities, explained, “Regarding the government’s upcoming measures to revitalize KOSDAQ—specifically the introduction of the so-called segment system—Alteogen Inc., as a leading KOSDAQ biotech company, is highly likely to benefit from these policies.” He added, “It seems the company opted to postpone its decision because it is not too late to decide on the move after confirming the effects of these measures.”
It is also believed that the fact that a move to the KOSPI no longer serves as a “guarantee of a stock price rise” influenced Alteogen Inc.’s decision. He said, “Looking at the past stock price trends of companies that have moved from KOSDAQ to the KOSPI, there aren’t many cases where the stock price changed significantly,” adding, “It seems Alteogen Inc. rationally assessed this aspect and soberly evaluated the potential benefits of the move.”
