South Korea delays KOSDAQ delisting threshold increase by six months

  • South Korea delayed the next increase in listed-company market-cap thresholds by six months.
  • 238 companies and 3.1267 million small shareholders were affected as of August 25.
  • The current 20 billion-won KOSDAQ threshold remains in force, with July 2027 increases planned.

South Korea has postponed the next increase in minimum market-cap requirements for listed companies by six months, citing the need for further market recovery. The KOSDAQ threshold remains 20 billion Korean won and the KOSPI threshold 30 billion won, while the planned increases to 30 billion and 50 billion won, respectively, have moved from January 2027 to July 2027. As of August 25, 238 listed companies were below either the 1,000-won share-price benchmark or the applicable market-cap threshold, affecting 3.1267 million small shareholders with holdings valued at 7.8501 trillion Korean won. The Korea Exchange estimates that the number of non-compliant companies could rise to 471 under the stricter rules. Companies below the current KOSDAQ threshold face managed-stock designation and eventual delisting unless they recover, while proposed alternatives include transfers to KONEX and investment funds for financially sound companies near the threshold.

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