Stocks designated as management items experienced significant declines on August 13, following the designation of 36 companies, including penny stocks and those with insufficient market capitalization, under stricter delisting criteria.
Among the 27 KOSDAQ-listed companies designated as management items, 23 saw their stock prices drop compared to the previous day, with an average decline of 8.1%. Concerns over potential delisting have rapidly dampened investor sentiment. Nine companies in the KOSPI market have already had their trading suspended.
The largest drop was recorded by Noeul, whose stock price fell 28.51% from 656 won on August 12 to 469 won. E8 also saw a decline of 21.95%, dropping from 706 won to 551 won. SDN's stock plummeted 19.91%, from 693 won to 555 won. Other companies, including Woori Enterprise (-18.87%), East Aid (-14.67%), and Shaferon (-14.66%), also recorded double-digit declines.
In response to their designation as management items, these companies are taking various measures to avoid delisting, with stock consolidation being a common strategy. Of the 36 companies designated, 20 have decided to implement or have already executed stock consolidations.
Additionally, more companies are expected to pursue legal action. Some have reportedly filed injunctions related to their designation as management items.
Major ReportsOn August 13, the government announced follow-up measures for the real estate sector. This plan includes comprehensive support for expanding housing construction in both public and private sectors, along with practical financial support such as easing project financing regulations.
New sites for development, including greenbelt areas, have been added. Following the announcement of new sites on January 29 (Yongsan, Gwacheon, and Taereung), additional sites in Gangseo, Namyangju, and Gwangju were also announced.
The government plans to reduce the time from the announcement of public land to construction from the previous 68 months to 37 months.
Support for the private sector is also included, with eased regulations on relocation loans for maintenance projects and adjustments to redevelopment project consent rate requirements (from 75% to 70%) as proposed by Seoul. Additionally, there will be a temporary suspension of capital ratio regulations for project financing in residential real estate.
The most notable aspect of this plan is its comprehensive support for both public and private sectors, unlike previous supply measures. Over the past decade (2016-2025), private sector construction has accounted for 80% of the total volume in the metropolitan area, highlighting its significance.
However, delays in appointing the president of the Korea Land and Housing Corporation (LH) and the impact of the Middle East conflict may hinder the achievement of the 2026 target of 269,000 housing units. Nonetheless, it will be important to monitor whether the cumulative construction target of 1.35 million units by 2030 can be met through policy adjustments.
Key Announcements After Market Close (August 13)- Namkwang Construction changes its leadership structure to Lee Dong-cheol and Shin Seung-cheol as co-CEOs.
- Ensitron announces a 6 billion won third-party allocation capital increase to Cactus PE.
- Hyundai Elevator declares a cash dividend of 1,000 won per share.
- Manho Steel announces a plan to enhance corporate value.
- Bitouen decides to consolidate shares from 100 won to 500 won.
- Parataxis Ethereum decides to consolidate shares from 100 won to 200 won.
Domestic equity funds: -2.9 billion won
Overseas equity funds: 7.4 billion won
Eurozone: GDP growth rate (Q2)
United States: Retail sales (July), Consumer sentiment index (August)
* This article has been translated by AI.
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