Korea Exchange (KRX) will tighten management standards for KOSDAQ special-listing corporations. Even corporations that listed after earning recognition for technology and growth will not be eligible for a grace period on delisting criteria unless they disclose a plan to enhance corporate value (value-up). The aim is to lower listing thresholds for innovative corporations in line with industry characteristics while significantly strengthening post-listing communication with investors and accountability.
Korea Exchange (KRX) on the 2nd announced revisions to KOSDAQ market listing rules that include these measures as a follow-up to the "KOSDAQ trust + innovation enhancement plan."
Previously, corporations listed under the technology exception were granted a grace period on applying delisting criteria stemming from revenue shortfalls and large losses. Going forward, this grace system will apply only to corporations that disclose a plan to enhance corporate value.
The exchange said the measure is intended to expand investor communication by special-listed corporations. As of the 15th of last month, there were 389 value-up disclosures by KOSDAQ-listed companies in total, but special-listed corporations accounted for only 10.
If a technology special-listed corporation changes its primary business purpose within five years after listing, it will also be subject to a substantive review for delisting. This means the exchange will recheck whether the technology and growth that justified the special listing are being maintained. The revised rules apply to corporations that file for preliminary listing review from this day forward.
Screening standards for listing innovative corporations will also be segmented to reflect industry-specific characteristics. The exchange has established tailored qualitative screening standards for advanced robotics, cybersecurity, and K-content industries, in addition to the existing bio, artificial intelligence (AI), space, and energy fields.
By reflecting industry-specific technological characteristics and business structures in reviews, the aim is to increase predictability for corporations preparing to list and ensure consistency in screening. These standards apply not only to technology special listings but also to general KOSDAQ listing reviews.
A basis has also been prepared for the system to disclose low-PBR (price-to-book ratio) corporations. The exchange will continuously disclose KOSPI and KOSDAQ low-PBR corporations on the KRX value-up website and tag their ticker names accordingly. However, corporations that disclose a plan to enhance corporate value will be excluded from disclosure for a certain period.
The system related to multiple voting shares will also be refined. While allowing the listing of common shares of corporations that have issued multiple voting rights, the exchange will introduce the concept of the "largest voting-rights holder" based on voting power, in addition to the existing largest shareholder, and reflect it in lockup obligations and listing reviews. During the preliminary listing review, the exchange also plans to examine the appropriateness of issuing multiple voting rights and safeguards against the abuse of voting power.