[2026 Audit] Minister Lee So-young: "KOSDAQ Delisting Based Solely on Market Cap Is Unfair... Opinion Delivered to Financial Services Commission"

"Growth and Profitability Should Be Considered in Determining Eligibility"

So-Young Lee, Minister of Small and Medium Enterprises and Startups, stated that if the eligibility of KOSDAQ-listed companies is determined solely based on market capitalization in relation to the tightening of delisting standards, it could lead to unfair outcomes.

On October 7, during a national audit by the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee, Minister Lee responded to criticism from Assemblyman Woo Jaejun of the People Power Party regarding the potential harm to small and venture businesses caused by stricter KOSDAQ delisting criteria by saying, "My views differ from those of the Financial Services Commission, and I largely agree with your point."

So Young Lee, Minister of the Ministry of SMEs and Startups, appeared at the National Assembly Industry, Trade, Energy, SMEs, and Startups Committee's audit of the Ministry of SMEs and Startups on the 7th and responded to questions. Photo by Yonhap News.

According to the Financial Services Commission, the market capitalization requirement for delisting from KOSDAQ was raised to 20 billion won in July this year. Beginning in July next year, it will be set at 30 billion won. Assemblyman Woo pointed out, "Thirty percent of the 149 companies currently below a 20 billion won market cap are profitable," and noted, "There are also companies listed through the technology exception program, so does it make sense to delist them just because their market cap is low?" He argued that applying a uniform standard could force even companies with growth potential out of the market.

In response, Minister Lee emphasized, "Basing the decision solely on the size of market capitalization could result in unfair outcomes," adding, "I believe that factors like growth and profitability should be comprehensively considered when determining listing eligibility."

Minister Lee further stated, "From the standpoint of the Ministry of SMEs and Startups, we have also conveyed a similar opinion to the Financial Services Commission as the one raised today," and added, "We will work to ensure our concerns are addressed, including discussing with the FCA chairman to alleviate these worries."

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