This study analyses the relationship between using derivatives and the foreign exchange exposure of non-financial companies in the KOSDAQ market from 2011 to 2019. The study shows that export ratio, foreign currency debt ratio, size of company, and debt ratio increased the likelihood of using derivatives. Moreover, it was found that companies with high dividend ratios and those with low largest shareholder holding ratios had a higher likelihood of using derivatives. This indicates that companies in the KOSDAQ market actively consider risk management in their decisions to use derivatives. An analysis of the relationship between the use of derivatives and foreign exchange exposure revealed that foreign currency liabilities had a significant relationship with foreign exchange exposure. These results suggest that companies need to devote more attention to the management of foreign exchange exposure from foreign currency liabilities. The results of this study demonstrate that KOSDAQ market companies use derivatives appropriately to manage their foreign exchange exposure. Considering that KOSDAQ companies incurred substantial losses from the derivatives used to manage their foreign exchange exposure during the global financial crisis, the results of this study have significant implications for understanding KOSDAQ market companies" foreign exchange exposure management.