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Financial Services Commission Chief Signals Potential Tweaks to KOSDAQ Delisting Rules
Finance · Financial Conglomerates · yonhap_finance · 2026-08-24
FSC Chairman Lee Eok-won announced plans to review delisting regulations after concerns arose that profitable firms could be delisted due to low market caps.
What Happened
Review of Delisting Rules: FSC Chairman Lee Eok-won stated that the government will consider fine-tuning delisting regulations following concerns that profitable companies could be delisted solely due to low market capitalization. This move aims to address criticisms that current rules fail to account for the fundamental value of companies.
Policy Dilemma: While the financial authorities emphasize the need to clean up the KOSDAQ market by removing insolvent firms, they maintain that a complete overhaul of the policy is difficult due to credibility concerns. The current rules mandate delisting if stock prices or market caps remain below specific thresholds for a set period.
Apology for Policy Errors: Chairman Lee apologized for administrative errors during the enrollment process for the Youth Future Savings Fund, which led some applicants to mistakenly terminate their Youth Leap Accounts. He promised to restore the accounts for affected individuals and pledged to prevent future occurrences.
Digital Asset Legislation: Regarding the government's proposal for a Digital Asset Basic Act, Lee noted that preparations are underway and that the authorities are accelerating discussions. He expressed a commitment to making every effort to submit the legislation by the autumn session.