5 penny stocks face delisting under tougher rules
SEOUL, Oct. 22 (Yonhap) -- Five listed firms face delisting as their stock price...
Five listed firms in South Korea face the possibility of being delisted due to their stock prices failing to meet stricter listing requirements, according to data from the Korea Exchange (KRX) as of October 22. These stricter rules were implemented in July with the aim of removing penny stocks, which have long been seen as a burden on the local stock market.
A listed firm will be forced into delisting if its stock price drops below 1,000 won (approximately US$0.75) per share for 45 consecutive trading sessions after receiving a warning from authorities for poor performance.
The five firms under scrutiny are TKG Aikang, Nuintek, Hyungji Global, Barunson Entertainment & Arts, and i-Scream Edu. These companies were previously warned regarding their penny stock status on August 13. When the KRX issues a public notice concerning the delisting of these five firms, it will mark the first instance of penny stocks being removed from the market under the new system.
In an effort to revitalize the KOSDAQ market, the KRX also intends to introduce a two-tier segmentation system in the secondary stock market starting next year. The proposed plan divides listed firms on the KOSDAQ market into two segments: a premium sector for large-cap companies and another for underperforming firms.
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