South Korea Strengthens KOSDAQ Delisting Standards from July 1, Market Cap Thresholds Rise to 20B-30B Won

According to Financial News, South Korea's Financial Services Commission and Korea Exchange strengthened delisting criteria for KOSDAQ-listed companies starting July 1. Current market capitalization thresholds increased to 20 billion won for KOSDAQ and 30 billion won for KOSPI; from next year, these rise further to 30 billion and 50 billion won respectively. New standards also include penny stock rules, complete capital impairment, and public disclosure violations.

Unexpectedly, some companies now view going private as advantageous over maintaining listing status. Experts note that firms facing inheritance planning, controlling shareholder defense needs, or seeking to reduce disclosure burdens find delisting favorable. Meanwhile, KOSDAQ mid-cap stock investor sentiment has weakened, with analysts attributing part of the weakness to delisting risk concerns.