Tighter delisting rules put $5.9 bil. of retail money at risk
More than 3 million retail investors hold penny stocks and low-market-cap shares that could be at risk of delisting as Korea tightens listing requirements, data showed Sunday. Their holdings were valued at nearly 8 trillion won ($5.9 billion). A total of 238 companies on the benchmark KOSPI and secondary Kosdaq either traded below 1,000 won a share or failed to meet minimum market capitalization…
Korea is tightening its delisting rules, potentially putting $5.9 billion in retail investor holdings at risk, according to data released by Rep. Park Min-kyu of the ruling Democratic Party of Korea. Over 3 million retail investors hold shares in companies that could be delisted, with their combined holdings valued at nearly 8 trillion won ($5.9 billion).
The Korea Exchange reported that 238 companies on the KOSPI and Kosdaq exchanges either traded below 1,000 won a share or failed to meet minimum market capitalization requirements. Of these, 61 were KOSPI-listed and 177 Kosdaq-listed, with nearly three times as many Kosdaq companies affected. These companies have a total of 3,126,710 retail shareholders, whose combined holdings are valued at 7.85 trillion won.
This tally may include duplication, as an investor can hold shares in multiple companies. The tougher delisting rules were announced by Korean financial authorities earlier this year to improve the quality of listed companies and restore investor confidence.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Tighter delisting rules put $5.9 bil. of retail money at risk koreatimes.co.kr
