Korean stock exchanges have introduced new ru…

According to a July 2nd announcement from the Korea Exchange (KRX), in order to further improve the KOSDAQ market system, the KRX announced formal revisions to its listing rules and implementation details, aiming to strictly control companies listed through the technology exception from deviating from their core business. The new rules explicitly state that companies listed through the technology exception that change their main business direction within five years of listing (excluding businesses similar to or affiliated with their original core business) will be subject to substantive delisting review. The KRX specifically cited an example last year where a biotechnology company transferred its management to an overseas digital asset company after listing and illegally transformed into a "crypto asset vault" or other digital asset professional investment institution. The KRX emphasized that such behavior causes companies to deviate from the technology and growth potential assessment basis approved at the initial listing stage, thus requiring strict delisting review. Furthermore, the new rules add additional restrictions to the grace period for delisting conditions enjoyed by companies listed through the technology exception (i.e., exemption from restrictions based on insufficient revenue or large-scale losses for 3 to 5 years), requiring these companies to publicly disclose their "corporate value enhancement plan" during this period to ensure future growth and strengthen communication with investors. This revision of regulations also includes capital market optimization measures such as expanding the standards for customized qualitative review of innovative enterprises and establishing a disclosure system for companies with low PBR (price-to-book ratio).

Korean stock exchanges have introduced new rules: companies listed under the technology exception that transition to businesses such as "crypto asset investment" will face delisting scrutiny.

Related Markets

Related

Bitcoin rally sends crypto stocks soaring as miners, treasury companies jump

Hyperliquid Spot Listing: $SPCXX listed on Hyperliquid xStocks

Hyperliquid Spot Listing: $SNDKX listed on Hyperliquid xStocks

Winners and losers of the SEC’s new tokenized stocks rules

SEC Clears a Path for Tokenized Stocks After Clarity Act Stumbles

Kraken launches US-listed stock trading for EEA customers