This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:55 p.m. on Jun. 10, 2026.
As the government moves to tighten delisting standards to weed out penny stocks (share price under 1,000 won) and corporations below the market capitalization threshold, strategic mergers and acquisitions (M&A) among small and mid-sized listed companies are emerging as an alternative. Even if a corporation has a low share price or small market cap, several joining together can bulk up and avoid delisting requirements.
Many rolled out capital reduction and reverse stock split cards to respond to the penny stock regulation to be newly introduced in Jul., but quite a few corporations have again seen their share prices fall below 1,000 won amid the recent KOSDAQ index plunge. The mood is that, in the end, there is no alternative but to increase corporate size.
According to the investment banking (IB) and capital market industries on the 10th, several M&As are being discussed for the purpose of maintaining listing, rather than for generating synergies between corporations or for exit purposes. The industry predicts that such cases will continue to increase as delisting standards are gradually tightened going forward.
A representative case of such M&A is WYSIWYG Studio and NP, subsidiaries of Com2uS. The two KOSDAQ-listed companies recently said they will relaunch under the name "Com2usN" through a merger. The surviving entity is NP, and WYSIWYG Studio is slated to be dissolved due to the merger.
In the case of WYSIWYG Studio, its market capitalization is in the 50 billion won range, but judging by the share price it could have been subject to delisting. Despite a recent surge, WYSIWYG Studio's share price remains in the 300-won range, creating the possibility it will be listed as subject to delisting after Jul. under the penny stock criteria. Even with a reverse split, the share price would not reach the par value of 500 won. When introducing the penny stock criterion in the strengthened delisting standards, financial authorities also said they would consider delisting cases where the share price is below par value to prevent regulatory circumvention.
NP is not immediately subject to delisting requirements, but neither its share price nor market capitalization is in a reassuring situation. On the 5th, the share price fell into the 500-won range, and as a result, market capitalization also shrank to 22 billion won.
The two companies said the purpose of the merger is "business synergy in content production capability," but noted that maintaining listing is also a goal. In a disclosure, they explained, "This merger is part of an essential management strategy to overcome the significant financial and structural crisis faced by WYSIWYG Studio, such as the recently strengthened delisting review guidelines and the delisting initiative for stocks below par value."
According to the capital market industry, quite a few corporations are seeking to maintain listing requirements through mergers like the two companies. However, few deals are said to be proceeding with speed. Because it is a merger between listed companies, shareholder interests can conflict. Each company's circumstances differ, and financial conditions and industry conditions all need to be considered.
An industry source said, "There are many corporations whose market capitalization and share price have fallen even though they are sound companies, simply because they are in unpopular sectors," adding, "There will likely be no shortage of cases where they face off, each saying 'our company is better.'"
It is also expected to be difficult to clear the financial authorities' hurdles. WYSIWYG Studio and NP have also received two correction requests from the Financial Supervisory Service.