South Korea's secondary bourse has posted sharp growth on hope for government policies rather than listed firms' financial health, raising concerns about a possible bubble, analysts said Saturday.

   On Friday, the KOSDAQ market closed 0.56 percent higher at 775.85, mainly led by pharmaceutical companies. The figure marks a whopping 22.7 percent growth from the 632.04 posted in the first session of 2017.

   Analysts said the growth was mainly attributable to the government's plan to foster small and medium sized companies.

   "The KOSDAQ market quickly reflected hope for governmental policies. However, it will take some time for such supports to become realized," said Ma Ju-ok, a researcher at Hanwha Investment & Securities Co. "For now, there are no signs of recovery for small-and-medium sized firms."

   Kim Yong-koo, an analyst at Hana Financial Corp., echoed the view, claiming investors should seek safer investment tools such as exchange-traded funds for the firms listed on the secondary bourse.

   Some analysts, on the other hand, said the future for the KOSDAQ market is still bright considering improving performances of listed firms.

   Kim Young-joon, a researcher at Kyobo Securities Co., said while the excessively rapid growth of pharmaceutical and biochemical shares is burdensome, the market is still inclined to expand further due to listed firms' improved earnings. (Yonhap)