Exchange Designates 72 Companies as Investment Caution Stocks on KOSDAQ Market

3 Companies Newly Designated as Investment Caution Stocks
Total of 33 Companies Released from Regular Designation Reasons

On the 30th, the Korea Exchange announced the designation and removal of investment caution alert items among the companies listed on the KOSDAQ market. (Provided by Korea Exchange)

[Asia Economy Reporter Gong Byung-sun] The Korea Exchange has designated 72 companies listed on the KOSDAQ as investment caution alert stocks. The classification of market segments was newly designated considering company size and financial status.

On the 30th, the Exchange announced that it had regularly designated market segments and investment caution alert stocks for 1,496 listed corporations on the KOSDAQ market. This measure will take effect from May 3.

A total of 72 companies were selected as investment caution alert stocks. The Exchange newly designated three companies?F&Republic, City Labs, and Cosnine?as alert stocks. VIDI had additional regular reasons added. Nine companies including Gangwon, Redrover, and Midas AI were removed from the alert stock designation. A total of 24 companies were released from regular reasons for alert stocks, including GV, Gold&S, DST, and Luxel.

Investment caution alert stocks are designated by considering financial variables and soundness-related variables that significantly affect corporate continuity and management transparency. Financial variables include current ratio, debt ratio, operating cash flow, net income, interest coverage ratio, capital erosion, and sales. Qualitative variables include the number of changes in major shareholders, number of CEO changes, and number of third-party allotment capital increases.

The Exchange also regularly designated market segments reflecting company size, financial status, management performance, recognition of technological capability, and history of Rising Star selection. This time, the market segments will be divided into 419 companies in the Prime Market, 271 in the Venture Market, 483 in the Mid-sized Market, and 127 in the Technology Growth Market.

The Prime Market increased by 49 companies compared to before the review. Accordingly, the proportion of the Prime Market among all companies rose from 24.7% before the review to 28%. The number of venture-related certificates submitted increased from 677 before the review to 752, but the Venture Market decreased by 16 companies. The Exchange explained that 34 companies that met Rising Star selection and financial requirements moved to the Prime Market due to improved performance. The Mid-sized Market also decreased by 33 companies. Of 96 companies with improved performance, 56 moved to the Prime Market and 40 to the Venture Market. Due to deteriorated financial performance, 64 companies moved from the Prime Market (37 companies) and the Venture Market (27 companies).

This content was produced with the assistance of AI translation services.