The KOSPI and KOSDAQ indices are displayed on an electronic board at the dealing room of Hana Bank in Jung-gu, Seoul, on the 12th. The KOSPI closed at 6,579.04, up 233.51 points (3.68%). The KOSDAQ ended at 858.91, up 1.07 points (0.12%). Yonhap News
Thirty companies listed on South Korea’s KOSPI and KOSDAQ markets will be designated as watch-list issues after trading for 30 sessions below the required share-price or market-value thresholds, putting them within range of delisting. Short-term buying flowed into low-priced stocks after a market slump, but it was not enough to lift them out of delisting territory.
According to the Korea Exchange, 21 companies — four on the KOSPI and 17 on the KOSDAQ — had traded below 1,000 won for 30 consecutive sessions as of the 12th. Another nine fell short on market value alone, including five on the KOSPI and four on the KOSDAQ. All 30 will be designated as watch-list issues from the 13th for failing to meet delisting standards.
On the KOSPI, Daeyoung Packaging closed at 711 won, while Ilshin Stone (664 won) and Hyungji Elite (403 won) also traded below 1,000 won. Taewon Mulsan (19.7 billion won), Daewon Chemical (21.8 billion won) and Namsung (23.5 billion won) fell below the market-value threshold. Ontide (732 won; 25 billion won) missed both the share-price and market-value standards.
On the KOSDAQ, some of the 21 affected stocks swung sharply ahead of the designation. Shaperon closed at 614 won, up 29.81% on the day, but remained below the threshold. Abion rose 29.98% on the 10th and 16.53% on the 11th, reaching 980 won, before tumbling 23.57% to close at 749 won.
The delisting rule targeting penny stocks, introduced to improve the market’s fundamentals, took effect on the 1st of last month. A company is designated as a watch-list issue if its common-stock closing price stays below 1,000 won for 30 consecutive trading sessions. The market-value thresholds were also tightened to 30 billion won for the KOSPI and 20 billion won for the KOSDAQ.
A watch-list designation does not mean immediate delisting, however. A company can clear the condition if, over the following 90 trading sessions, its share price stays at or above 1,000 won for 45 consecutive sessions. If it fails to do so, it is ultimately delisted.