This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:39 p.m. on Apr. 08, 2026.
A warning on fire sales at listed companies has been issued. As financial authorities tighten listing maintenance requirements, there is a preemptive move to sell equity, centered on marginal companies such as those falling short of market capitalization requirements and penny stocks, driving the trend. There are concerns that after control changes, improper fundraising or attempts to prop up share prices could intensify.
According to the investment banking (IB) industry, control equity at more than 10 companies listed on the Korea Composite Stock Price Index (KOSPI) and the KOSDAQ market has been put up for sale in the mergers and acquisitions (M&A) market. Most are small- and mid-cap stocks with low market capitalizations and weak financial structures, and sellers all want to close the transaction as quickly as possible.
Hanbitsoft, a game corporations listed on the KOSDAQ market, and CANVAS N, a video content producer, are representative cases. They have begun contacting potential buyers with the goal of selling the largest shareholder's control equity. CHASYS, an auto parts specialist corporations listed on the KOSPI, has also begun work to sell control equity.
Analysts say tighter delisting standards have fueled the surge in assets for sale. Financial authorities, aiming to resolve the "Korea discount" and boost domestic stock market value, have moved to speed up the exit of insolvent companies. Starting early this year, a new market capitalization threshold of 15 billion won was applied to KOSDAQ market delisting criteria.
Considering that until last year the market cap requirement for maintaining a KOSDAQ market listing was 4 billion won, it has been raised to nearly four times that. The KOSPI is set higher at 20 billion won. If the market cap shortfall persists for 30 consecutive trading days, the company is designated for administrative issues, after which delisting procedures begin.
An IB industry official said, "It is no exaggeration to say that virtually all small- and mid-cap stocks with market caps of 20 billion to 30 billion won are potential assets for sale," adding, "Once designated for administrative issues, they cannot enjoy a listed-company premium, so controlling shareholders increasingly view now as the last 'golden time for sale.'"
The supply of listed-company assets for sale is expected to grow further. This is because listing maintenance requirements will be tightened another notch starting in the second half. For market cap standards, KOSDAQ market-listed companies will be raised to 20 billion won and the KOSPI to 30 billion won. In addition, a delisting condition for penny stocks with share prices under 1,000 won will be newly established.
Although assets are flooding the market, whether transactions will close is uncertain. Buyers eyeing backdoor listings have begun reviewing assets, but they are thoroughly shunning acquisitions of listed companies with weak financial structures. This reflects concerns that if a company is delisted right after acquisition, investors could lose all their capital.
Some point out that among corporations that struggle to find sound acquirers, "zero-capital M&A" and artificial share-price boosting may emerge. Under regulatory pressure, if controlling shareholders focus solely on exiting to capture a listing premium, there is a high chance they will hand control to speculative capital.
A representative example is the sale of control by the founder-CEO of the artificial intelligence (AI) corporations Crowdworks. The buyers secured control, including the board, solely by subscribing to about 9 billion won in new shares, but are reportedly delaying payment for the purchase of existing shares owed to the largest shareholder. Recently, they raised the prospect of expanding into the robotics business.
An expert in the capital market said, "A hastily arranged M&A to avoid delisting can end up as a 'hot potato' that ultimately harms retail investors," adding, "Introduce a mandatory tender offer system that also requires buying some shares from minority shareholders, and establish investor protections for equity transactions under 25% that are being abused as a means to evade regulation." The mandatory tender offer system currently under discussion in the National Assembly is drawing criticism that if the largest shareholder's equity ratio falls below 25%, it is excluded, making the regulation easy to circumvent.