Hwang Chang-soon, chairman of the KONEX Association and CEO of auto and medical device parts manufacturer Taeyang3C, proposed allowing public offerings of approximately 5 billion won for new KONEX listings to address the market's liquidity crisis. The proposal comes one year after his appointment as chairman, during which the KONEX market's daily trading volume averaged 1.3 billion won this year, declining from 1.8 billion won in January to 700 million won in June. Hwang cited insufficient liquidity and declining number of listed companies as primary reasons for the market's weakened vitality. He emphasized that public awareness improvement is essential for the KONEX market to gain momentum, noting that most people still ask "What is KONEX?" The association resumed the 'KONEX Activation Support Project' in June after sustained advocacy, increasing support per listed company from 60 million won to 90 million won.
Hwang Proposes 5 Billion Won Public Offerings for New KONEX Listings
Hwang stated that activating public offerings of a certain scale is necessary when companies newly list on KONEX. He specified that a scale of approximately 5 billion won would be sufficient. Unlike KOSDAQ, KONEX does not require public offerings during listing, so most companies directly list without stock distribution through public offerings and raise funds through separate methods such as private placements. He explained that this structure inevitably leads to liquidity shortages from the initial listing stage. Hwang assessed that liquidity can be revived if initial fundraising through public offerings and stock distribution are supported. He added that even approximately 5 billion won entering during new listings would be tremendously helpful.
KONEX Association Resumes Support Project with Increased Funding
Hwang disclosed that the association resumed the 'KONEX Activation Support Project' in June after continuous advocacy over the past year. The support program had previously been abolished, significantly reducing support for newly listed companies. The support scale per listed company increased from 60 million won to 90 million won. He noted that the number of newly listed KONEX companies was 4 in the past year, decreasing from 14 in 2023 and 6 in 2024. Trading volume also decreased from 920,000 shares in 2024 to 490,000 shares in the past year.
Hwang Advocates Automatic Transfer Listing System to KOSDAQ
Hwang stated that introduction of an automatic transfer listing system is necessary, allowing KONEX-listed companies to automatically transfer to KOSDAQ when market capitalization, sales, and management transparency are secured. He noted that similar systems exist in Japan and Canada. He also emphasized the need for securities company trading infrastructure improvements, pointing out that only a minority of securities companies reflect KONEX in their MTS (Mobile Trading System) and HTS (Home Trading System) for market price inquiries and orders of KONEX-listed companies, unlike KOSPI and KOSDAQ companies. He expressed hope that this would expand to all securities companies and that financial information of KONEX-listed companies would be displayed on portal sites like Naver's securities pages.
Hwang Calls for Star Companies to Emerge in KONEX Market
Hwang stated he aims to create a KONEX market where star companies emerge that are better than KOSDAQ. He expressed his intention to contribute to forming an index gathering not just one or two but 10 to 20 star companies. He explained that if investors move according to the index, actual fund investment can be expected. He noted that many companies transferring from KONEX to KOSDAQ can emerge, and star companies remaining in KONEX can also appear. He emphasized that if regional root companies or local companies that have led job creation enter the KONEX market in large numbers, trust will be established, and star companies can emerge on that foundation.
Taeyang3C Listed on KONEX in 2023 for Strategic Growth
Hwang disclosed that Taeyang3C, where he serves as CEO, listed on KONEX in 2023. He stated that listing on KOSDAQ was also possible at the time, but he chose KONEX because large investor funds were not needed and he felt step-by-step growth was necessary. The main reason for listing was to strengthen corporate competitiveness. He assessed that the status of a listed company is advantageous when negotiating with overseas buyers or discovering new clients. After listing, the company participated in customized consulting by Korea Exchange to enhance management transparency and established an opportunity to advance into the medical device sector, which was not part of the existing business model. He added that the company recently received a large project from a global company.
FAQ
What did Hwang Chang-soon propose for new KONEX listings?
Hwang Chang-soon, chairman of the KONEX Association, proposed allowing public offerings of approximately 5 billion won for new KONEX listings to address the market's liquidity crisis. He explained that unlike KOSDAQ, KONEX does not require public offerings during listing, leading to liquidity shortages from the initial listing stage.
Why did the KONEX market's trading volume decline?
The KONEX market's daily trading volume averaged 1.3 billion won this year, declining from 1.8 billion won in January to 700 million won in June. Hwang cited insufficient liquidity and declining number of listed companies as primary reasons, noting that the number of newly listed companies decreased to 4 in the past year from 14 in 2023.
What support program did the KONEX Association resume in June?
The KONEX Association resumed the 'KONEX Activation Support Project' in June after sustained advocacy over the past year. The support scale per listed company increased from 60 million won to 90 million won.
