Stricter delisting criteria take effect, KOSDAQ 200hundred million won · KOSPI 300hundred million won
The Financial Services Commission and the Korea Exchange implemented stricter delisting criteria centered on the 'swift and stringent removal of financially troubled companies' from 1onward. The market capitalization threshold for KOSDAQ was raised to 200hundred million won, while that for the securities market was raised to 300hundred million won; from next year, the criteria for each market will be raised further to 300hundred million won.
The Financial Services Commission and the Korea Exchange implemented stricter delisting rules aimed at the 'swift and stringent removal of financially troubled companies' from 1onward. Under the overhaul, the market capitalization threshold for KOSDAQ-listed companies was raised to 200hundred million won, while that for companies listed on the securities market was raised to 300hundred million won.
The stated purpose of the policy is to raise the criteria for maintaining a listing, remove companies that have lost competitiveness at an early stage, protect investors, and restore confidence in the capital market. The criteria initially applied will operate from this month.
According to the article, some companies view the overhaul as grounds to consider transitioning to unlisted status instead of maintaining their listings. Reducing disclosure burdens in the process of defending management control or handling inheritance and gifts has been cited as a possible purpose.
It was also reported that investors and market participants should carefully review disclosures regarding designation as an issue under administration and whether a company is subject to a substantive review of its eligibility for listing. Starting next year, the standards for the two markets are expected to be raised further to 300billion won, respectively, it was reported.
This measure is characterized in particular as a change that will increase the burden of maintaining listings for small and medium-sized listed companies with low market capitalizations.
Sources: 파이낸셜뉴스 증권
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.