The South Korean government and Korea Exchange have strengthened delisting requirements to remove underperforming companies more quickly, while introducing safeguards for eligible firms facing delisting on KOSDAQ. Companies designated as managed stocks for insufficient market capitalization after July 1, 2023, can apply to transfer their listings to KONEX (South Korea’s market for smaller companies) if they meet specified financial conditions. Eligible firms must have recorded profits in two of the past three fiscal years, or one profitable year alongside equity capital exceeding 20 billion Korean won. Approved transfers can proceed without a liquidation sale and preserve the existing stock price, while the requirement to appoint a designated KONEX listing adviser will be temporarily postponed. The planned increase in the delisting market-capitalization threshold from 20 billion Korean won to 30 billion won has also been delayed from January 1, 2027, to July 2027. The measures follow a recent KOSDAQ downturn and will also apply to the KOSPI market, the government said.