111 KOSDAQ Companies Face Delisting Under New July Rules; 7 Financially Sound Firms May Paradoxically Benefit

According to Han Kyung, starting July 1, 111 KOSDAQ-listed companies have entered the imminent delisting zone under South Korea's strengthened new regulations. A company faces management designation if its market cap falls below 20 billion won or stock price stays below 1,000 won for 30 trading days; forced delisting follows if it fails to meet criteria for 45 consecutive days within 90 trading days.

Among these at-risk firms, seven companies show strong financials: positive net income for three consecutive years and net assets exceeding current market capitalization. These include SBI Investment, JMI, and five others. Notably, major shareholders in most candidates hold over 40% stakes. Analysts note that mandatory delisting may paradoxically benefit controlling shareholders, who can avoid costly buyouts of minority shareholders required in voluntary delistings, gaining greater operational freedom while retail investors bear losses.