What is KOSDAQ?

KOSDAQ is a market operated by the Korea Exchange (KRX) alongside the main KOSPI market. It was created to help smaller and newer companies raise capital, and it is often compared with the Nasdaq in the United States.

What trades there

KOSDAQ lists many technology, biotechnology, content, and equipment companies. Its listing requirements are generally less strict than the KOSPI market’s, and several KOSDAQ listings are suppliers to larger companies in semiconductors and batteries.

Characteristics

• Volatility: smaller companies and a higher share of retail trading make KOSDAQ more volatile on average than KOSPI.
• Index: the KOSDAQ Composite Index tracks the market; the KOSDAQ 150 covers larger, more liquid names.
• Transfers: successful companies sometimes move their listing to the KOSPI market.

For foreign investors

The same access routes apply as for KOSPI: an international broker, funds or ETFs, or (rarely for KOSDAQ names) US-listed securities. Liquidity and English-language disclosure can be thinner for smaller companies, so reading the primary filings on DART is especially important.

This glossary entry is general information, not investment advice.