The Kosdaq Stock Market Tightens Listing Requirements

The Kosdaq Committee is tightening listing requirements to keep out shaky start-ups. However, firms in the biotechnology and environmental industries will face fewer listing limits in accordance with measures to cultivate such companies. The new measures, "2002 Kosdaq Market Operational Guidelines," were announced Monday, January 21, by the committee.

The guidelines call for an overhaul of the listing evaluation system by the end of April. The focus will be on establishing new evaluation standards according to a firm's industrial classification and specialization. Under the new rules, financial underwriters will be banned from acquiring stocks in client firms.

To prevent insider trading, the committee is considering reserving the right to demand certain documents from firms under scrutiny. The panel plans to introduce an Automatic Detection System equipped with artificial intelligence to detect any extraordinary trading patterns. "Kosdaq's image has suffered due to recent scandals. Our aim is to create a more transparent, healthier market," Chung Eui-dong, the committee head said.