36 Stocks Designated as 'Management Issues' Following Stricter Delisting Rules

The Exchange has designated 36 stocks with low share prices and market capitalizations as 'Management Issues' (risk of delisting) in accordance with the strengthened delisting criteria implemented last month. The new standards apply when a stock trades below 1,000 won for 30 consecutive business days or when the market cap falls below 3 billion won for KOSPI or 2 billion won for KOSDAQ. Companies that have executed stock consolidations or capital reductions within the past year face restrictions on additional consolidations or reductions following this designation.

Companies designated as Management Issues can have the designation lifted if their share price or market capitalization meets the criteria for 45 consecutive days during the next 90 trading days. Failure to recover will result in final delisting.

Lee Hyo-seop, head of the Financial Industry Division at the Capital Markets Research Institute, stated that active trading on over-the-counter platforms following delisting could minimize losses for small investors.