194 companies on South Korea’s KOSDAQ market have market capitalization below the delisting threshold, accounting for 10.6% of the market’s listed companies.

As of August 7, 194 listed companies on South Korea’s KOSDAQ market have market capitalizations below the threshold for designation as administrative stocks, accounting for 10.6% of the market’s total 1,820 listed firms; 41 such companies are listed on the KOSPI market. Since July 1, KOSDAQ’s market cap threshold has been raised from 15 billion won to 20 billion won, while KOSPI’s threshold has been lifted from 20 billion won to 30 billion won. Companies whose market capitalization remains below the threshold for 30 consecutive trading days will be classified as administrative stocks. Once in this category, firms must restore their market cap to above the threshold for 45 consecutive trading days within 90 trading days; failure to do so will trigger delisting procedures. On the stock price front, 48 listed companies have disclosed risks of being designated as administrative stocks due to their share prices staying below 1,000 won for 25 consecutive trading days, including 38 on KOSDAQ and 10 on KOSPI. If the relevant companies fail to record any trading day with a share price of 1,000 won or higher by August 12, they may be classified as administrative stocks starting from the next trading day. (NATE)