Driving Out Bad Actors? Over 10% of Companies on South Korea's KOSDAQ Face Delisting Risk under New Criteria

BlockBeats News, August 9th — As of August 7th, on the South Korean KOSDAQ market, 194 listed companies had a market capitalization below the management-class stock recognition standard, accounting for 10.6% of the 1820 listed companies in the market; on the KOSPI market, there were 41 such companies. Starting from July 1st, the market cap standard on KOSDAQ was raised from 15 billion Korean won to 20 billion Korean won, and on KOSPI from 20 billion Korean won to 30 billion Korean won. Companies with a market cap below the standard for 30 consecutive trading days will be classified as management-class stocks; once included, they must restore their position above the standard for 45 consecutive trading days within 90 trading days, or they will enter delisting procedures.

Regarding the stock price standard, 48 listed companies have already disclosed the risk of being classified as management-class stocks due to their stock price being below 1000 Korean won for 25 consecutive trading days, including 38 on the KOSDAQ market and 10 on the KOSPI market. If these companies' stock prices do not reach 1000 Korean won by August 12th, they may be classified as management-class stocks from the next trading day onwards. (NATE)