Korea Exchange Revises Delisting Rules for Companies Below Market-Cap Threshold
Translated from Korean and summarized by DistantNews. Read the original for the full story.
At a glance
News
Official statement
New plan
- The Korea Exchange is revising its detailed rules for delisting companies that fall below the required market capitalization.
- The revised assessment will account for price adjustments linked to rights offerings and stock dividends.
- The change aims to prevent companies from facing delisting because of artificial distortions in their share prices, while some firms may see their period below the threshold shortened.
The Korea Exchange is moving to revise how it applies the market-capitalization threshold for delisting, after South Korea’s financial authorities tightened delisting requirements in July.
Under the planned adjustment, the exchange will take account of rights-price changes from paid or free capital increases, as well as price changes linked to stock dividends. The measure is intended to prevent companies from being unfairly pushed toward delisting because of misleading movements in their share prices.
The change has already shortened the period below the threshold for some companies, according to the details provided.
About this summary
Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.
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