Kosdaq Delays Tighter KRW 30 Billion Delisting Rule by 6 Months
IT DAILY ·
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The government has gradually raised the market capitalization thresholds for delisting on the Kosdaq and Kospi.
The tighter Kosdaq delisting requirements, originally set to take effect in January next year, have been delayed by 6 months to July next year.
The government said more time is needed for the market to recover and that fairness with the Kospi was also considered.
Since launching capital market advancement policies this year, the government has gradually raised the market capitalization threshold for delisting on the Kosdaq and Kospi. The Kosdaq delisting market cap threshold was raised from KRW 4 billion to KRW 15 billion in January, and was further tightened to KRW 20 billion from July 1. The Kospi delisting market cap threshold was also raised from KRW 20 billion to KRW 30 billion.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol held a joint government agency "market situation review meeting" at the Korea Federation of Banks Hall in the morning of the 4th. The meeting was attended by Financial Services Commission Chair Eo Joon-young, First Vice Minister of Land, Infrastructure and Transport Kim Yi-tak, Financial Supervisory Service Governor Lee Chan-jin, and Bank of Korea Vice Governor Kwon Min-soo. The meeting reviewed trends in domestic and overseas financial markets, foreign exchange markets, and real estate markets.
The agenda for the meeting included the recent delisting trend on the Kosdaq market and the future policy direction. The government said it needs more time for the market to recover, and decided to delay by 6 months the tougher Kosdaq delisting requirements that had been scheduled to take effect in January next year.
Meanwhile, Koo Yun-cheol presided over and delivered opening remarks at the "Emergency Economic Task Force meeting, Economic Ministers' meeting, and Special Ministers' TF for Special Management of Livelihood Prices" held on August 28 at the Government Seoul Complex in Jongno-gu, Seoul. The photo source is the Ministry of Economy and Finance.
Originally, the market capitalization thresholds for the Kosdaq and Kospi were set to rise further starting January 1 next year. The stricter thresholds are KRW 30 billion for Kosdaq and KRW 50 billion for Kospi. If a company falls short of the market cap threshold for 30 consecutive trading days, it is designated as a monitoring issue, and if it fails to maintain the threshold for 45 consecutive trading days within 90 trading days after being designated, it is delisted.
However, the government decided to delay the timing of the additional increase in the market cap thresholds by 6 months. The original target was January next year, but the revised timing is July next year. The reason for the delay is that the market needs time to recover. Similar requests were also raised for the Kospi, and the government also took into account fairness with Kosdaq companies.
In addition, the government will implement a system for companies designated as monitoring issues for failing to meet the market cap threshold. If certain financial requirements are met, transfer listing to KONEX will be allowed without a liquidation sale.
Source: IT DAILY · Kim Ho-jun
Original: https://www.itdaily.kr/news/articleView.html?idxno=241412
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Source: IT DAILY
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