Alphabiz - Decline in KONEX Listings Undermines Pathway for Bio Firms to KOSDAQ

Photo courtesy of Yonhap News

[Alpha Biz= Paul Lee] SEOUL, May 26 — South Korea’s KONEX is seeing a sharp decline in biotech listings, weakening its role as a stepping stone to the KOSDAQ amid deteriorating market liquidity.

According to industry data, only two biotech-related firms have newly listed on KONEX over the past two years, while just two companies successfully transferred to KOSDAQ during the same period. No new applications for transfer listings have been filed in the past year.

The downturn is largely attributed to low liquidity, which has led to depressed valuations and increased volatility. Average daily trading volume on KONEX has dropped significantly, making it difficult for companies’ growth potential and technology value to be fully reflected in market prices.

As a result, biotech firms are increasingly bypassing KONEX in favor of direct KOSDAQ listings, where valuation is not constrained by pre-established market pricing. Additional hurdles—such as mandatory technology evaluations and concerns over share overhang—have further reduced the attractiveness of the KONEX route.

Industry participants note that even securities firms are becoming reluctant to underwrite KONEX listings, highlighting structural challenges in the market’s role as an entry platform for emerging biotech companies.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)