KRX broadened the crackdown to crypto-focused business pivots, tougher disclosure duties and faster delisting procedures for KOSDAQ companies listed through the technology-special track.
South Korea is tightening oversight of KOSDAQ companies that listed through the technology-special IPO route and later shift away from their original businesses, including toward cryptocurrency treasury strategies. KRX said on July 2 that companies entering the market through the tech-special listing program will face substantive delisting reviews if they change their main business within five years of listing, with the amendments taking effect immediately. The exchange linked the move to cases in which firms approved on the basis of one technology business later became crypto investment vehicles, undermining the basis on which they were originally listed. The rule change comes as regulators also scrutinize the quality of tech-special listings, with Financial Supervisory Service data showing 88.6% of 105 KOSDAQ companies that qualified for IPO pricing projections from 2022 to 2024 used the tech-exception route, while 79.1% failed to meet projected revenue, operating profit and net profit targets. KRX is also requiring tech-exception companies to disclose plans to enhance corporate value during their grace period, shortening substantive delisting reviews from three stages to two, and cutting the maximum improvement period from two years to one year.