Barun Law LLC (co-managing attorneys Lee Dong-hoon, Lee Young-hee, and Kim Do-hyeong) held a seminar to review corporate risks and response plans following the tightening of delisting requirements. The aim is to manage in advance the legal issues that listed companies may face, such as share price declines, disclosure and financial risks, and potential lawsuits by minority shareholders.
Barun said on the 16th that it held a seminar titled "Survival strategies for listed corporations amid regulatory changes — legal risks and practical response plans under the revamped delisting regime" at the Barun Building in Gangnam-gu, Seoul, on the 15th.
Barun attorney Choi Seung-hwan gave a presentation on "Legal response strategies for listed companies under the penny stock exit system." The penny stock exit system, which took effect on the 1st, designates a stock as under management if its share price falls below 1,000 won for 30 consecutive trading days. If the share price then fails to recover to at least 1,000 won for 45 consecutive trading days within the next 90 trading days, it becomes subject to delisting.
Barun attorney Lee Hyeong-jin presented on "Enterprise-wide risk management to prevent delisting." Lee explained that delisting can lead to legal disputes such as damages claims by minority shareholders, and that management burdens can also grow, including blocked financing.
Barun adviser Yoon Gi-jun, who worked as head of listing at the KOSDAQ market at the Korea Exchange (KRX), addressed "Changes to and significance of the delisting system." Yoon said the 45 consecutive trading day requirement is important under the penny stock exit system and noted that a response framework focused on advance checks, rather than after-the-fact fixes, is needed.
Barun managing attorney Lee Dong-hoon said, "With this revamp, the legal risks faced by listed companies have increased," and added, "Barun's delisting response team will integrate finance, disclosure, IR, and compliance so that corporations can achieve the goals of maintaining their listings and enhancing corporate value."