According to Sina Finance, a Korea Exchange executive said on Tuesday that the exchange plans to implement a two-tier system in the KOSDAQ market next year to revive the startup stock market. Choi Ji-woo made the remarks earlier in the day at an investor presentation in Seoul.

Under the proposal, listed companies on KOSDAQ would be split into two segments: a preferred segment for top-quality companies and another for firms with weak performance. Choi said the plan aims to create a market environment that allows KOSDAQ-listed companies to keep growing while helping investors identify companies with development potential more efficiently.

He said KOSDAQ currently has about 1,800 listed companies, and that the market segmentation would strengthen the reliability of the secondary market. The exchange also plans to reform its delisting process for companies on KOSDAQ that may not be able to continue as going concerns. Choi said Korea Exchange will hold a public hearing in the fourth quarter this year to begin work on the proposed market segmentation system.