News / Korea / yonhap_finance
South Korea Eases Rules for Companies Moving to Konex to Avoid Delisting
Finance · Investment Banks/Brokers · yonhap_finance · 2026-09-04
Regulators will allow companies failing market cap requirements to transfer to the Konex market without delisting, while delaying stricter listing thresholds.
What Happened
Regulatory Relief: The South Korean government has introduced measures to allow companies facing delisting due to market capitalization shortfalls to transfer to the Konex market without undergoing liquidation. This policy aims to mitigate market shocks and provide a lifeline to viable businesses.
Eligibility Criteria: To qualify for the transfer, companies must meet specific financial benchmarks, such as maintaining profitability in two of the last three years or having at least 20 billion won in equity with one year of profit. Capital-impaired firms remain ineligible, though certain advisory requirements will be temporarily waived.
Threshold Delay: The planned increase in the minimum market capitalization requirement from 20 billion to 30 billion won, originally set for January, has been postponed by six months. This adjustment reflects the government's response to recent volatility and requests from the corporate sector.
Market Monitoring: Financial authorities continue to track global economic headwinds, including rising interest rates and energy costs. They remain committed to supporting vulnerable borrowers and ensuring market stability through proactive policy management.