As the financial authorities newly established delisting requirements for so-called "penny stocks" with share prices under 1,000 won, related corporations' share prices have been swinging on the afternoon of the 12th. Some corporations went straight to the upper limit, while others are plunging.

The Financial Services Commission and the Korea Exchange (KRX) said they announced "delisting reform measures for swift and strict exit of insolvent corporations" and will designate "penny stocks" as delisting targets starting July 1. They judged that penny stocks have characteristics such as high price volatility and low market capitalization and are easily exploited as targets for stock manipulation.

Vice Chair Kwon Dae-young of the Financial Services Commission gives a briefing at Government Complex Seoul in Jongno-gu, Seoul, on the 12th on a delisting reform plan to swiftly and strictly weed out insolvent companies. /Courtesy of News1

As of 2:18 p.m. that day on the KOSDAQ market, Softcen was trading at 328 won, up 75 won (29.64%) from the previous trading day. After opening at 252 won, the share price expanded its gains following the announcement of the financial authorities' delisting requirements for penny stocks and hit the upper limit.

Bohae Brewery, N2TECH, Exion Group, Hyungji I&C, and Q Capital Partners are also surging.

Meanwhile, some corporations are showing a downward trend. Aprogen was trading at 516 won at the same time, down 51 won (8.99%) from the previous trading day. Welkeeps Hitech, WINPAC, Dynamic Design, UDMTEK, and CU Medical Systems are declining.

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