Revised Listing Regulations of the KOSDAQ Market
Follow-up Measures to the Government Support Plan
Listing Requirements
- KOSDAQ as a market exclusively for small and medium-sized enterprises and venture start-ups.
- Abolition of the listing requirement that a company applying for listing on the KOSDAQ market should be of a considerable size and standing within the industry.
- Relaxation of the financial requirements for growth venture companies- exemption from the ROE and ordinary income requirements.
- Advancing of delisting of the stocks of financially-troubled companies
- The grounds for designating stocks as administrative issues have been expanded. (If a company's whole capital has been impaired according to the latest bi-annual report, the stock will be designated as an administrative issue)
- The period of grace before delisting has been reduced for companies with at least 50% of its capital impaired. (1 year?6 months)
- Companies found guilty of a serious securities-related fraudulent act will face the delisting of its stock according to the nature of the fraudulence. (Stock price manipulation, window-dressing settlement, false disclosures, etc).
- The lock-up period has been reduced (largest shareholders, etc.)
- The limitation barring bonus issues for one year after listing has been eliminated.
- The requirement of lead-managers' share-holding has been removed.
Listing Requirements
- Debt ratio
(1.5 times the industry average or 100% (in absolute term)?1.5 times the industry average or the average of all KOSDAQ-listed companies)
- Advancing of de-listing of stocks of financially-distressed companies
- Stricter de-listing rules will be applied for companies in prolonged ordinary loss
- In cases where the ordinary loss has been more than 50% of the shareholders' equity for three consecutive years, the stock will be de-listed.
- Stronger market capitalization requirements(1.0 billion won ?2.0 billion won)
- Rationalization of De-listing Criteria
- The trading volume-based de-listing criteria have been revised.
- The de-listing criteria have been revised in favor of companies with well-distributed stock ownership.
- The market transfer fee has been abolished.
- Revised Business Regulations of the KOSDAQ Market
- Expansion of the price fluctuation limit: (current) 12% ? (new) 15%
