South Korea to review KOSDAQ delisting rules after profitable firms face exit risk

South Korea’s Financial Services Commission will examine whether KOSDAQ delisting requirements based on market capitalization need fine-tuning after lawmakers warned that profitable companies could be forced off the exchange. The threshold rose to 20 billion won, approximately $14.5 million, on July 1 and is scheduled to increase to 30 billion won, approximately $21.7 million, in January next year. Chairman Lee Eok-won said broad policy changes would be difficult because removing insolvent companies is central to normalizing the market, but he left open the possibility of partial adjustments. Lee also defended regulators’ consultations and approval process before single-stock leveraged ETFs were launched, after lawmakers said the FSC’s impact analysis examined leveraged indexes rather than the risks of single-stock products. Separately, he said financial authorities had completed preparations for the government’s Digital Asset Framework Act and would accelerate substantive consultations. The hearing also covered supplier creditor protection in Homeplus’s rehabilitation proceedings and the possible restoration of Youth Leap Accounts affected by enrollment-guidance errors.

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