Korea's delisting drive faces court challenge as expulsions nearly double
The government's push to speed up the delisting of troubled companies is running into legal resistance, industry officials said Sunday. The challenges threaten to complicate efforts to improve the quality of the country's stock market after the number of firms removed from the Korea Exchange (KRX) nearly doubled this year. The Seoul Southern District Court recently granted injunctions sought by…
Government efforts to expedite the removal of struggling firms from Korea's stock market have encountered legal obstacles, industry experts reported on Sunday. The surge in expulsions from the Korea Exchange (KRX) this year nearly doubled compared to previous years. Recently, the Seoul Southern District Court granted injunctions to two prominent companies, JooYonTech and KM Pharmaceutical, preventing their delistings from the KOSPI and Kosdaq stock exchanges, respectively.
Despite considering the defendants' arguments, such as the possibility that granting the injunction might delay much-needed capital market reforms, the court emphasized that the potential harm to the plaintiffs' businesses, possibly even threatening their survival, outweighed any benefits of delisting. Consequently, the KRX accelerated the implementation of stricter market-capitalization requirements for KOSPI companies (30 billion won or $22.28 million) and Kosdaq firms (20 billion won) to July 2025, ahead of the originally scheduled January 2027 deadline.
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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