Korea Exchange. [Yonhap News] 사진 확대 Korea Exchange. [Yonhap News]

The Korea Exchange will suspend the follow-up process of delisting due to lack of market capitalization standards. Respecting the court’s will, the exchange decided to keep the designation of management items due to lack of market capitalization as it is, but to suspend the delisting process afterward.

The exchange said in a press release on the 7th, “Considering the purpose of the court’s decision, if the market capitalization standard is not met, the designation of the managed item on July 1 will be maintained, but the subsequent delisting process after the designation of the managed item will not be carried out from the 2nd of this month and will be suspended in the future.”

This means that transactions will continue to take place in the market. However, the suspension of transactions will continue for the eight companies that were decided to delist before Oct. 2 due to lack of market capitalization.

The corporations are eight companies, including Shilla SG, Gold & S, KM Pharmaceutical, Fintel, Juyeon Tech, Sejin TS, AFD, and SHD.

Earlier, the 51st Civil Affairs Department of the Seoul Southern District Court cited a provisional injunction filed by Juyeon Tech and KM Pharmaceutical against the Korea Exchange on the 2nd, respectively.

The court reportedly pointed out that companies designated as management items due to lack of market capitalization should be delisted if they do not cross the market capitalization baseline for 45 consecutive trading days within 90 trading days.

It is said that the measure has undermined the principle of proportionality and predictability in the case of advancing the implementation period of the market capitalization standard of 30 billion won in KOSPI and 20 billion won in KOSDAQ, which were originally scheduled to be applied in January next year, to July this year.

Due to the court’s decision to cite the provisional injunction, Juyeon Tech and KM Pharmaceutical will be suspended until the decision to delist is finalized, and the process of liquidation will not proceed.