Generative AI startup Upstage has prioritized the KOSDAQ market for its initial public offering and plans to apply for a preliminary listing review within the year. The company recently informed major financial investors and underwriters of its preference, although consultations and final decisions on the market and timing remain outstanding. Founded in 2020 by Professor Kim Seong-hoon, who previously led AI development at Naver and is affiliated with the Hong Kong University of Science and Technology, Upstage was the only startup selected last August for the government’s Independent AI Foundation Model Project. Its valuation reached 2 trillion Korean won after investment from the National Growth Fund, while it recorded an operating loss of 30.5 billion won last year. Upstage had initially been considered a KOSPI candidate under the unicorn exception for loss-making companies valued above 1 trillion won. Korea Exchange efforts to attract AI companies to KOSDAQ, including Chairman Jeong Eun-bo’s meetings with industry participants and the prospect of tailored review support, influenced the shift. Lablup’s approval for preliminary listing review about two months after applying on May 21 also provided a recent precedent for a faster KOSDAQ process.