Korea Exchange moves to overhaul Kosdaq technology-exception listing system

Korea Exchange announced Friday that it had held a public hearing and workshop on proposed reforms to its expert evaluation system for Kosdaq listings.

The exchange's Kosdaq Market Division has been working since March to improve the operating framework of the expert evaluation system used for technology-exception listings on the Kosdaq market.

The technology-exception listing regime broadens access to the Kosdaq market for companies with strong technological capabilities or distinctive business models.

Companies may apply for a technology-exception listing only if their rating from a designated expert evaluation agency meets a minimum threshold.

About 60 representatives from venture companies, venture capital firms, lead underwriters and expert evaluation agencies attended the public hearing at Korea Exchange in Yeouido, Seoul, where participants discussed and fielded questions on the proposed reforms to the evaluation system.

The accompanying workshop featured a sharing of evaluation practices and best cases among evaluation agencies, along with a special lecture on advanced technology.

"We will continue to communicate with stakeholders and gather industry opinions to enhance the expertise and quality of technology evaluations," Korea Exchange said.

A finalized reform plan for the expert evaluation system is expected to be confirmed by the end of the year after further consultation with the industry.

A total of 300 companies have listed on the Kosdaq market through the technology-exception regime to date. Korea Exchange first introduced the system in March 2005, targeting the biotech sector, and has since expanded its scope to cover additional industries and eligible entities.

The 300 companies have raised a combined 8 trillion won ($5.88 billion) in cumulative public offerings. Five of the technology-exception companies have been delisted to date due to audit opinion denials and other reasons.