The delisting procedures for penny stocks and those failing to meet market capitalization requirements have intensified. With the implementation of strengthened listing regulations, 30 stocks have been newly designated as management stocks, and additional reasons for designation have been added to six existing management stocks.
According to the Korea Exchange, as of the market close on August 12, 30 stocks that have traded below 1,000 won for the past 30 trading days or failed to meet the minimum market capitalization requirements will be newly designated as management stocks effective August 13. The six existing management stocks will also have additional reasons for their designation.
The newly designated management stocks include 18 stocks classified as penny stocks, with three from the KOSPI market and 15 from the KOSDAQ market. The existing management stocks, including E8, BK Holdings, Ice Cream Edu, Wonpung Mulsan, Barunson E&A, and Susung Webtoon, will have the penny stock designation reason added.
Additionally, nine stocks that did not meet the penny stock criteria but failed to meet the minimum market capitalization requirements (300 billion won for KOSPI and 200 billion won for KOSDAQ) over the past 30 trading days will also be newly designated as management stocks, comprising five from the KOSPI and four from the KOSDAQ.
Three stocks that meet both the criteria of trading below 1,000 won and failing to meet market capitalization requirements will be newly designated as management stocks, including one from the KOSPI and two from the KOSDAQ.
This action marks the first application of the revised listing regulations that took effect on July 1. The amendments stipulate that stocks trading below 1,000 won for 30 consecutive trading days or failing to meet the minimum market capitalization requirements will be designated as management stocks. If these stocks fail to meet the criteria for 45 out of the following 90 trading days, delisting procedures will commence.
* This article has been translated by AI.
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