Minister of Small and Medium Enterprises and Startups Lee So-young expressed concerns that determining KOSDAQ listing eligibility based solely on market capitalization could lead to unfair outcomes.
During a National Assembly audit on October 7, Lee responded to ruling party lawmaker Woo Jae-jun, who highlighted the potential harm to small and venture businesses from stricter delisting criteria. "I also have a different opinion from the Financial Services Commission and largely agree with your concerns," she said.
According to the Financial Services Commission, the market cap threshold for KOSDAQ delisting was raised to 20 billion won in July and will increase to 30 billion won next July.
Woo noted that 30% of the 149 companies currently below the 20 billion won threshold are profitable, questioning the rationale behind delisting based solely on low market capitalization, especially for companies listed under technology special listing criteria.
In response, Lee stated, "Judging solely by market cap can lead to unfair results. I believe we should consider factors such as growth potential and profitability when determining listing eligibility." The Small and Medium Enterprises and Startups Agency has communicated these concerns to the Financial Services Commission.
Additionally, Lee mentioned plans to quantify the financial burdens on small businesses, including rent, labor costs, interest, and platform fees, using objective indicators for ongoing government management.
She also announced an expansion of support for self-employed individuals' employment insurance premiums and the establishment of new support for industrial accident insurance and health care, aimed at strengthening the social safety net for small businesses.
Lee highlighted the creation of a Startup Venture Regulation Innovation Committee to find solutions from the perspectives of businesses and citizens. She also noted the designation of six additional startup cities, considering regional growth engines, to foster a regionally driven startup ecosystem.
Furthermore, she emphasized the need to extend the lifespan of the fund of funds to create stable venture investment conditions in the long term. To enhance the competitiveness of small businesses, she stressed the importance of involving them in the design phase of national strategic industries and large projects. Lee explained that innovative companies in emerging sectors such as new security, biopharmaceuticals, and climate technology will receive concentrated support over the long term to develop into global innovators.
Finally, she stated that the government will support the international expansion of small business products in beauty, food, and fashion based on K-culture, while establishing export roadmaps tailored to the growth stages of companies to drive rapid export growth. Lee assured that the government would assist small businesses in adapting to changes such as AI transformation and carbon neutrality, from diagnostics to equipment conversion and commercialization.
During a National Assembly audit on October 7, Lee responded to ruling party lawmaker Woo Jae-jun, who highlighted the potential harm to small and venture businesses from stricter delisting criteria. "I also have a different opinion from the Financial Services Commission and largely agree with your concerns," she said.
According to the Financial Services Commission, the market cap threshold for KOSDAQ delisting was raised to 20 billion won in July and will increase to 30 billion won next July.
Woo noted that 30% of the 149 companies currently below the 20 billion won threshold are profitable, questioning the rationale behind delisting based solely on low market capitalization, especially for companies listed under technology special listing criteria.
In response, Lee stated, "Judging solely by market cap can lead to unfair results. I believe we should consider factors such as growth potential and profitability when determining listing eligibility." The Small and Medium Enterprises and Startups Agency has communicated these concerns to the Financial Services Commission.
Additionally, Lee mentioned plans to quantify the financial burdens on small businesses, including rent, labor costs, interest, and platform fees, using objective indicators for ongoing government management.
She also announced an expansion of support for self-employed individuals' employment insurance premiums and the establishment of new support for industrial accident insurance and health care, aimed at strengthening the social safety net for small businesses.
Lee highlighted the creation of a Startup Venture Regulation Innovation Committee to find solutions from the perspectives of businesses and citizens. She also noted the designation of six additional startup cities, considering regional growth engines, to foster a regionally driven startup ecosystem.
Furthermore, she emphasized the need to extend the lifespan of the fund of funds to create stable venture investment conditions in the long term. To enhance the competitiveness of small businesses, she stressed the importance of involving them in the design phase of national strategic industries and large projects. Lee explained that innovative companies in emerging sectors such as new security, biopharmaceuticals, and climate technology will receive concentrated support over the long term to develop into global innovators.
Finally, she stated that the government will support the international expansion of small business products in beauty, food, and fashion based on K-culture, while establishing export roadmaps tailored to the growth stages of companies to drive rapid export growth. Lee assured that the government would assist small businesses in adapting to changes such as AI transformation and carbon neutrality, from diagnostics to equipment conversion and commercialization.
* This article has been translated by AI.
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