The KOSDAQ market closed at 837.43 on July 10, marking a 13.47% decline over the recent month (June 10–July 10) as it celebrated its 30th anniversary. The underperformance occurred as investor focus shifted heavily toward KOSPI stocks, particularly after single-stock leverage ETFs for Samsung Electronics and SK Hynix launched on May 27. In response, the Korea Exchange announced plans to introduce a segment system to strengthen delisting of weak companies and attract institutional capital.
KOSDAQ Posts 13.47% Monthly Decline as KOSPI Outperforms
According to the Korea Exchange on July 12, the KOSDAQ index closed at 837.43 on July 10. Over the recent month (June 10–July 10), KOSDAQ declined 13.47%, while KOSPI fell 7.67% during the same period. Year-to-date, KOSDAQ dropped 9.51% compared to KOSPI's 77.40% gain. KOSDAQ briefly surpassed the 1,000 level on January 26 for the first time in about four years and crossed 1,200 on April 24 for the first time since August 2000, but has since given back most of those gains and retreated to the 700 level this month.
Inverse ETFs Record Double-Digit Gains on KOSDAQ Weakness
As KOSDAQ weakness continued, inverse exchange-traded funds (ETFs) betting on the market's decline posted double-digit returns. Over the recent month, KIWOOM KOSDAQ150 Futures Inverse ETF rose 11.63%. KODEX KOSDAQ150 Futures Inverse ETF and RISE KOSDAQ150 Futures Inverse ETF each gained 11.38%, while TIGER KOSDAQ150 Futures Inverse ETF recorded a 10.43% return.
Daily Trading Volume Drops 51.3% from January Levels
KOSDAQ's average daily trading volume this month reached 7.2646 trillion won, down 51.3% from 14.9122 trillion won in January. In contrast, KOSPI's average daily trading volume increased 48.6% from 27.0561 trillion won to 40.2139 trillion won during the same period. KOSDAQ's share of total trading volume relative to KOSPI fell from 55.1% in January to 18.1% this month.
Market Cap Gap Between KOSPI and KOSDAQ Expands to 13.3x
KOSPI's market capitalization recently stood at 13.3 times that of KOSDAQ, significantly wider than the 4.4x gap recorded in 2023. Securities industry analysts note that record-level differentiation is occurring as capital concentration toward the KOSPI market accelerates.
Korea Exchange Announces Segment System at 30th Anniversary Event
At the KOSDAQ 30th anniversary ceremony, the Korea Exchange announced plans to strengthen delisting of weak and marginal companies and introduce a KOSDAQ segment system to select quality firms as core initiatives. The measures aim to restructure the market where quality and weak companies are mixed, enhance investor confidence, and expand foreign and institutional capital inflows. A securities industry official stated, "While the KOSPI concentration phenomenon will be difficult to resolve in the short term, selective recovery centered on companies with earnings and growth potential may appear in KOSDAQ. Whether the segment system leads to market confidence recovery and capital inflows will be key."
FAQ
How much did KOSDAQ stocks decline in the recent month?
KOSDAQ declined 13.47% over the recent month (June 10–July 10), closing at 837.43 on July 10.
What measures did the Korea Exchange announce at the KOSDAQ 30th anniversary event?
The Korea Exchange announced plans to strengthen delisting of weak companies and introduce a segment system to select quality firms, aiming to enhance investor confidence and expand institutional capital inflows.
