Sejong Law Firm Holds Seminar on "Proactive Strategies for KOSDAQ Delisting Reform Measures"

Explanation of Key Reforms and Case-Centered Discussions

SEJONG Law Firm announced on the 19th that it held a seminar at the SEJONG seminar room in Jongno-gu, Seoul, under the theme, "Exploring Corporate Response Strategies to KOSDAQ Market Revitalization Policies – Proactive Strategies for Delisting Reform Measures."

Jinho Jung, Chief Attorney at Law Firm Sejong (Judicial Research and Training Institute Class 20), is delivering the opening remarks at a seminar held on the 18th at Sejong in Jongno-gu, Seoul. Sejong

Jinho Jung, Senior Partner at SEJONG Law Firm (Judicial Research and Training Institute Class 20), said in his opening address at the seminar held the previous day, "The recent institutional reforms in the KOSDAQ market may pose burdens for companies, but at the same time, they present a turning point that could generate new growth opportunities." He added, "SEJONG will continue to proactively support companies as their legal partner so that they can respond to the evolving regulatory environment."

The seminar provided detailed explanations and case-focused discussions on major reforms, including the increase in market capitalization requirements, the establishment of new delisting criteria for penny stocks, and the strengthening of the criteria for complete capital erosion.

In the first session, Jiho Kang, an advisor who spent about 27 years at Korea Exchange working in key departments such as the Listing Examination Department, Disclosure Department, ESG Support Department, and Market Surveillance Headquarters, delivered a presentation on "Overview of Measures to Enhance Trust and Innovation in the KOSDAQ Market and Exchange Trends." Advisor Kang outlined the key aspects of recent institutional changes and explained in detail the shifts in Korea Exchange's review and management standards that companies should pay close attention to.

Next, Muyoung Yoo, Head of the Policy Finance Team in SEJONG's Financial Regulation Group (Judicial Research and Training Institute Class 38), addressed the topic, "Proactive Response Strategies for Maintaining Listing." Yoo presented strategic approaches for companies to respond to the tightening of delisting requirements. He said, "Maintaining a listing must now be approached as an essential survival strategy for companies, and it has become more important than ever to establish a proactive defense system rather than relying on post-event remedies." He advised, "In particular, to meet the strengthened financial requirements, such as higher market capitalization and sales, companies need to simultaneously pursue company value enhancement through strategic M&A and actively attract investment by utilizing policy funds across the organization." He further emphasized, "With the introduction of the director's duty of loyalty under the amended Commercial Act, the likelihood of class action lawsuits by minority shareholders after delisting has increased." Therefore, he stressed the need for "companies to closely collaborate with large law firms capable of providing comprehensive legal responses from the early stages of risk occurrence, in order to minimize disputes."

Meanwhile, SEJONG's Financial Regulation Group consists of around 50 members, including lawyer Sungku Jeong (Judicial Research and Training Institute Class 25). The Financial Regulation Team, Digital Finance Team, Accounting Supervision and Investigation Team, Insurance Team, Virtual Assets Team, Policy Finance Team, and Capital Market Investigation Response Team all work together organically. Living up to its reputation as a traditional leader in financial advisory, SEJONG is annually recognized as a Top Tier law firm in the finance and capital markets sectors by global law firm evaluation platforms such as Chambers and Legal500.

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