Many so-called 'penny stocks' with share prices below 1,000 won are facing delisting risks. As of August 7, a total of 48 companies, including 10 on the KOSPI and 38 on the KOSDAQ, have announced concerns about being designated as management stocks due to their share prices falling below 1,000 won.
Among these, 43 companies issued announcements on August 5. Since the delisting criteria were tightened on August 1, companies whose share prices have remained below 1,000 won for 25 consecutive trading days since August 5 are required to disclose their management designation concerns.
Companies that announced on August 5 are likely to be designated as management stocks starting August 13 if they do not escape the 'penny stock' status by August 12. The number of affected companies may increase, as over 160 listed companies, including 32 on the KOSPI and 131 on the KOSDAQ, had share prices below 1,000 won as of August 7.
The tightening of market capitalization requirements (300 billion won for KOSPI and 200 billion won for KOSDAQ) is also putting pressure on smaller listed companies. Since August 1, 56 companies have disclosed concerns about management designation due to falling short of market capitalization requirements, with 28 of these already designated as management stocks.
As of August 7, 41 companies on the KOSPI and 194 on the KOSDAQ fell below the market capitalization criteria, with 10.6% of the 1,820 listed companies on the KOSDAQ not meeting the standards.
Companies are attempting to boost their share prices and market capitalizations through measures such as capital increases, share buybacks, stock consolidations, and mergers and acquisitions, but the effectiveness of these strategies has been limited.
* This article has been translated by AI.
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