동전주·시총미달 36곳 관리종목 지정…상폐 기로 ‘운명의 90일’

As regulatory bodies tighten the requirements for corporate delisting in the Korean stock market, an increasing number of companies are being designated as "management companies" in anticipation of delisting. Most of these companies are listed on the Kospi exchange, which has faced significant losses this year due to the dominance of the semiconductor sector.

The Korea Exchange announced that from July 1, 9 out of 9 Kospi-listed companies and 27 out of 27 Kospi-listed companies will be designated as management companies, bringing the total to 36. The financial authorities have raised the threshold for total market capitalization in both exchanges from 200 billion to 300 billion won for the Kospi and 150 billion to 200 billion won for the Kospi.

Companies with stock prices below 1,000 won, known as "dongcheon shares," have also been added to the delisting criteria. To be designated as a management company, a company must fail to meet one of the two criteria for 30 consecutive trading days. Once designated, these companies must maintain both the total market capitalization and stock price standards for 45 consecutive trading days to avoid delisting.

Approximately 75% of the designated companies are Kospi-listed, reflecting the sector's significant impact on the overall market. Although the Kospi index recently recovered to around 800 points, it is still far from its level a year ago, indicating that more companies may be designated as management companies in the future. In response to the delisting crisis, some companies are considering stock mergers.

Out of the companies designated as management companies, 31 have announced their decision to merge. Of these, most are eligible based on the total market capitalization criteria but not on the stock price criteria. However, those that fall short of the total market capitalization criteria have few viable solutions. An industry insider noted that these struggling companies may find it difficult to secure financing through stock offerings.

The recent surge in Samsung Electronics and SK Hynix shares, following a temporary rebound in Korean semiconductor sentiment, has limited the overall rise in the Kospi index. During a recent regulatory reform conference for small and medium-sized enterprises, the issue of undue elimination of financially stable companies from the market was also discussed.

Benchee Association Chairman Song Byung-jun emphasized the need for measures to prevent such unjust eliminations, while Financial Committee Vice-Chairman Kang Da-young highlighted the importance of creating a dynamic market environment for entry and exit to protect long-term investors. Other industry insiders called for fundamental improvements in the structure of the Kospi to encourage greater institutional investment.