On February 12, 2026, the Financial Services Commission (the “FSC”) and the Korea Exchange (the “KRX”) jointly announced a sweeping overhaul of the KRX delisting framework under the “Delisting Reform Plan for the Swift and Strict Exit of Underperforming Companies” (the “Reform Plan”) as a response to persistent market underperformance.  The delisting criteria under the Reform Plan are comprised of 4 key elements (of which are discussed in more detail below together with procedural streamlining measures): (i) accelerated implementation of minimum market capitalization thresholds, (ii) introduction of a new standalone delisting criterion targeting penny stocks (referring to shares trading below KRW 1,000; Dongjeonju, in Korean), (iii) extension of the complete capital impairment standard to cover semi-annual assessments and (iv) reduction of the accumulated disclosure violation threshold from 15 to 10 penalty points, with a single material and intentional violation independently mandating substantive delisting review.

The foregoing delisting criteria are applicable equally to both the KOSPI and KOSDAQ markets, through the amendments to the KOSPI Market Listing Rules and KOSDAQ Market Listing Rules effective July 1, 2026.   

26F, Grand Central A, 14 Sejong-daero, Jung-gu, Seoul T. +82-2-6200-1600 E. master@jipyong.com

Subscribe | Unsubscribe

Seoul | Suncheon | Busan | Shanghai | Ho Chi Minh City | Hanoi | Jakarta | Phnom Penh | Vientiane | Yangon | Moscow | Budapest

This message was prepared for our clients for the purpose of providing real-time updates on general legal information only, and should not be relied on as legal advice or the opinion of the firm. Please contact the relevant authors for further information regarding an article's contents.

ⓒ JIPYONG LLC. ALL RIGHTS RESERVED.