Exchange to shorten KOSPI delisting improvement period from 2 years to 1 year starting next month

The Korea Exchange announced on the 27th that it has amended the detailed enforcement rules of the listing regulations for the KOSPI and KOSDAQ markets, including the reduction of the improvement period related to delisting.

In the KOSPI market, the improvement period that can be granted to the target company by the Corporate Evaluation Committee and the Listing Disclosure Committee during the delisting review will be shortened from a maximum of 2 years to 1 year.

In the case of the KOSDAQ market, the improvement period that can be granted by the Corporate Evaluation Committee and the KOSDAQ Market Committee during the delisting review (substantive review) will be shortened from a maximum of 2 years to 1 year and 6 months.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

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However, if the implementation of important parts of the improvement plan or a court ruling related to delisting is scheduled, each committee may allow an additional improvement period of up to 3 months.

Furthermore, if formal delisting reasons such as audit opinion refusal and substantive review reasons such as embezzlement or breach of trust occur simultaneously, each procedure will be conducted separately. If delisting is decided based on either reason, the company will be delisted immediately.

In the KOSPI market, even if a qualified audit opinion is obtained in the next fiscal year after receiving a non-standard audit opinion, this will be considered a reason for substantive review.

The detailed enforcement rules of the listing regulations for the KOSPI and KOSDAQ markets will take effect from the 4th of next month. In addition, to implement the 'Delisting System Improvement Plan,' the listing regulations for the KOSPI and KOSDAQ markets are scheduled to be amended in the second quarter of this year.

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