[2026 National Audit] One in Six KOSDAQ-Listed Companies Meets Delisting Criteria... Includes Firms with Three Consecutive Years of Profit

Min Byungduk Calls for Comprehensive Review of Uniform Standards

It has been confirmed that more than one out of every six KOSDAQ-listed companies meets the delisting criteria set to take effect in July next year.

Min Byungduk, Member of the Democratic Party of Korea. Photo by Yonhap News Agency

According to materials submitted by Min Byungduk, a member of the Democratic Party of Korea and the National Assembly's Political Affairs Committee, based on data from the Korea Exchange, as of July this year, 96 companies listed on the KOSDAQ meet the delisting criteria that went into effect at that time. Of these, only 19 companies posted profits in operating income for all of the past three years. The number of KOSDAQ companies expected to meet the criteria that will go into effect in July next year has jumped to 314. Among these, 76 companies have posted operating profits for all of the past three years.

The Financial Services Commission and the Korea Exchange have been strengthening delisting standards with the intention of protecting investors and improving market soundness by swiftly and strictly removing financially unstable companies. As of July this year, the minimum market capitalization required to remain listed on the KOSDAQ was raised from 15 billion won to 20 billion won. The original plan called for a further increase to 30 billion won in January 2027. However, in September, the financial authorities announced that companies meeting certain financial requirements could be transferred to KONEX without preliminary liquidation trading procedures, and the implementation of the 30 billion won threshold would be delayed by six months. As a result, the 30 billion won standard will now apply from July 2027.

Major overseas markets rely not on a single indicator, but on a combination of multiple criteria and qualitative assessments. The NASDAQ in the United States, for example, does not only consider market capitalization; it also takes into account shareholders' equity, total assets, revenue, and other factors related to a company's scale and financial condition when setting listing maintenance requirements. Similarly, the Tokyo Stock Exchange in Japan does not evaluate listing eligibility solely based on market capitalization, but conducts comprehensive reviews that consider a range of qualitative factors such as marketability and financial soundness.

Assemblyman Min stated, "Regulators should not stop at merely postponing the implementation of the new delisting standards by six months. They must fundamentally re-examine the uniform, market capitalization- and stock price-led criteria themselves. While it is important to rigorously remove poorly performing companies, a sophisticated delisting system must be established that also reflects substantive business performance and long-term sustainability, to ensure that companies with growth potential and technological capabilities are not indiscriminately excluded from the market."

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