Delisted Companies Due to Insufficient Market Capitalization Now Allowed to Transfer Listing to KONEX

Under the new listing regulations, KOSPI and KOSDAQ listed companies that are delisted solely due to falling below the minimum market capitalization requirement will be eligible, under certain conditions, to transfer their listing to KONEX.

Korea Exchange

According to the Korea Exchange on September 23, the financial authorities decided earlier this month, at a joint market monitoring meeting with relevant agencies, to allow companies delisted for failing to meet the market capitalization threshold to transfer their listing to KONEX.

In July of this year, the minimum market capitalization requirements were raised to 30 billion won for KOSPI and 20 billion won for KOSDAQ. From next year, these requirements will be further strengthened to 50 billion won for KOSPI and 30 billion won for KOSDAQ.

To be eligible for a KONEX transfer, companies must either record operating profit in two out of the past three years, or have operating profit in one of those years with shareholders’ equity of at least 20 billion won.

Applications for prior consultation for a KONEX transfer must be made within 40 trading days from the date the stock is designated as an administrative issue due to insufficient market capitalization. New listing applications should be submitted within three trading days from the occurrence of the delisting reason.

The Korea Exchange stated, "We plan to actively support companies transferring to KONEX so that they can use the transition as a new opportunity, by easing potential market shocks caused by the stricter market capitalization delisting requirements and providing measures to assist these companies."

This content was produced with the assistance of AI translation services.