Over half of KOSDAQ-listed companies now trade below their book value, with 951 firms showing price-to-book ratios (PBR) under 1x as of the 22nd, according to Korea Exchange data. This represents 53% of the 1,802 total KOSDAQ listings, up from 723 companies (41%) on June 2, 2025, before President Lee's inauguration. The increase in undervalued stocks occurred as the semiconductor rally in the main board market drew liquidity away from KOSDAQ, causing its trading volume to decline 5.9% over the past year while the main board surged 254%.
KOSDAQ Low-PBR Companies Increase to 951 Firms
The number of KOSDAQ companies with PBR below 1x reached 951 as of the 22nd, representing 53% of all 1,802 KOSDAQ listings, according to Korea Exchange data released on the 24th. This compares to 723 companies (41% of total listings) on June 2, 2025, before President Lee's inauguration. A PBR below 1x indicates the company's market value is lower than its book value of net assets, suggesting undervaluation.
The KOSDAQ index fell to the 740 level this month, showing similar levels to before President Lee's inauguration. The index declined alongside the KOSPI, which dropped this month after surging in the first half of the year.
Harim and Wonik Materials Trade Below Book Value
Several established companies are among the low-PBR KOSDAQ stocks. Harim, a leading domestic chicken processing company by revenue, has a PBR of 0.86x as of the 22nd. Harim recorded revenue of 1.44 trillion won last year and has a market capitalization of 284.6 billion won, which is below its investment real estate and tangible assets of approximately 444.4 billion won on a consolidated basis.
Wonik Materials, expected to benefit from the semiconductor cycle, has a PBR of 0.8x. DB Securities forecasts Wonik Materials' performance this year at 380.6 billion won in revenue and 70.9 billion won in operating profit, projecting continued increases in customer utilization rates in the second half.
KOSDAQ Trading Volume Share Drops to 15.95%
The increase in low-PBR KOSDAQ stocks is attributed to the main board's semiconductor-led rally absorbing market liquidity. Over the past year, main board trading volume increased 254%, while KOSDAQ trading volume decreased 5.9% during the same period.
KOSDAQ's share of total domestic stock market trading volume plummeted from 41.68% to 15.95% during this period.
Securities Industry Cites Lack of Market Attention
A securities industry official stated, "While policies such as the KOSDAQ promotion and demotion system planned by financial authorities are important, the primary issue is that interest in the KOSDAQ market has fallen too much." The official explained, "Small and medium-sized companies have weak IR and promotion functions, and securities firms' interest is low, so reports are rarely published. This creates a structure where there is no information itself, making it difficult to attract the buying interest needed to drive up stock prices."
FAQ
What percentage of KOSDAQ companies trade below book value as of the 22nd?
951 KOSDAQ companies, representing 53% of all 1,802 KOSDAQ listings, have price-to-book ratios below 1x as of the 22nd, according to Korea Exchange data.
How did KOSDAQ trading volume change compared to the main board over the past year?
Over the past year, KOSDAQ trading volume decreased 5.9% while main board trading volume increased 254%. KOSDAQ's share of total market trading volume fell from 41.68% to 15.95% during this period.
