Seoul: As the Kosdaq celebrates its 30th anniversary, an editorial from Korea Herald raises pressing questions about the future of South Korea's tech-heavy growth market. Established to finance the country's next generation of innovative firms, the Kosdaq seems to have lost its edge, rewarding survival over success. The editorial highlights a significant concern: Why has Korea's growth market ceased to expand? According to Yonhap News Agency, while the Kospi surged by an impressive 94.79 percent this year, reaching a record high, the Kosdaq has slipped by 2.64 percent. This stark contrast underscores a larger issue - the misallocation of capital within Korea's flagship growth market. The remarkable performance of the Kospi has been largely driven by the earnings boom of major semiconductor companies like Samsung Electronics and SK hynix, drawing investors towards semiconductor stocks. However, the Kosdaq's struggle to grow is attributed to deeper issues with investor trust. The presence of "zombie companies ," firms unable to generate enough profit to cover interest expenses, is a significant problem for the Kosdaq, with nearly one-third of its listed companies falling into this category. This stands in stark contrast to the Kospi, where the share is almost half. Research by the Bank of Korea indicates that an increase in the share of zombie firms leads to reduced investment and employment growth at healthy companies, as scarce capital remains tied to stagnant businesses. The government's recent reform plan aims to address these challenges by introducing stricter delisting standards and a new tier system for the Kosdaq. However, these measures alone may not be sufficient to restore investor confidence or revive the market's original purpose. The editorial suggests that the Kosdaq should draw lessons from regional competitors like China's ChiNext and STAR markets, which have implemented successful registration-based listings and firm enforcement against fraud. Ultimately, the Kosdaq must evolve beyond being a m arket that preserves inefficient firms. A system that allows capital to exit failing firms as readily as it enters promising ones is crucial for Korea to achieve the innovative marketplace it envisioned in 1996.