Government policies, pharma/biotech gains, and AI semiconductor trends fuel milestone
On the morning of the 26th, the KOSDAQ index surpassed 1,000 points, reaching an intraday high of 1,018.47. This marked the first time the KOSDAQ crossed the 1,000-point threshold since January 6, 2022 (1,003.01), when the index fell amid global monetary tightening — over four years later. The KOSDAQ had recovered the 1,000-point level in 2021, erasing memories of the dot-com bubble, but this time analysts note the achievement was driven by individual companies’ performance amid capital concentration in the KOSPI market and the expansion of the virtual asset market.
Shortly after the launch of the Lee Jaemyung government in June of last year, the KOSDAQ hovered around the 750-point level, with a market capitalization of 387 trillion Korean won.
Over the next six months, it surged more than 25%, breaking through the 1,000-point mark. Market capitalization, which stood at just 29 trillion Korean won at the end of 2000, grew to 98 trillion by the end of 2010, 385.6 trillion by the end of 2020, and reached a record high of 560.27 trillion Korean won as of this day, ushering in the 500 trillion era.
◇Pharmaceuticals and Biotech Lead, Policy Support, and AI Semiconductor Cyclical Trading Converge
The index’s rise was fueled by the accumulated performance of pharmaceutical and biotech sectors since the second half of last year. Top market-cap companies like Alteogen and Sam Chun Dang Pharm saw royalty income from technology export contracts translate into operating profits, which increased by an average of over 60% compared to the previous year, driving the overall index upward.
The Lee Jaemyung government’s KOSDAQ revitalization measures also bolstered the index. President Lee stated, “We must revive the KOSDAQ to ensure fair opportunities for retail investors,” and the Financial Services Commission announced a KOSDAQ market revitalization plan on December 20 of last year, expanding tax benefits and increasing pension funds’ investment ratios.
The broader market rally also benefited the KOSDAQ. Capital flowing into AI semiconductor leaders like Samsung Electronics and SK Hynix on the KOSPI spilled over to relatively undervalued KOSDAQ companies involved in HBM (high-bandwidth memory) equipment and components, creating a cyclical trading trend.
Despite stabilizing above the 1,000-point mark, the KOSDAQ remains at one-third of its all-time high (2,834.40). A source from the financial investment industry said, “If the 1,000-point mark in 2021 was driven by liquidity, the 2026 milestone reflects the government’s policy resolve, abundant waiting funds, and the performance strength of advanced industries. A full-scale market revaluation will begin, centered on stocks that have proven global competitiveness.”
