KOREAN REPUBLIC: FSC Approves Revisions to KRX Listing Rules

Thursday May 14 2026

On 13^th May 2026, the Financial Services Commission approved a set of revision proposals to the Korea Exchange (KRX) listing regulations. The Financial Services Commission’s (FSC’s) approval follows the previously announced plan (Feb. 12, 2026) to strengthen delisting rules to make the domestic stock markets more dynamic by facilitating a seamless entry of innovative companies and ensuring a swift and strict removal of unviable companies.

The revised KRX listing regulations will strengthen or newly introduce the following four key standards considered for delisting.

First, the upward adjustment of market capitalization threshold for KOSPI-listed and KOSDAQ-listed companies, previously scheduled to take place from January 1, 2027 and January 1, 2028, with the market cap threshold rising to KRW30 billion and KRW50 billion for KOSPI-listed companies and to KRW20 billion and KRW30 billion for KOSDAQ-listed companies, respectively, will move up six months early each time. As a result, the market cap threshold for delisting will be raised from KRW20 billion currently to KRW30 billion for KOSPI-listed companies from July 1, 2026, and then to KRW50 billion from January 1, 2027. For KOSDAQ-listed companies, the market cap threshold for delisting will be raised from KRW15 billion currently to KRW20 billion from July 1, 2027, and then to KRW30 billion from January 1, 2027.

Second, there will be a new delisting standard established for micro-cap stocks (so-called “penny stocks”) trading below KRW1,000 per share. Specific standards and procedures will be identical to the aforementioned market cap threshold. Micro-cap stocks trading below KRW1,000 for thirty consecutive trading days will be designated on the watch list, and during the period of ninety trading days thereafter, they will need to be able to stay above KRW1,000 for forty-five consecutive trading days to remain listed or otherwise face delisting ultimately.

Third, a company’s total capital impairment was previously considered as a condition for delisting only at the end of each fiscal year. However, this standard will be strengthened to a semi-annual basis. In this regard, whereas a company’s total capital impairment at FYE (fiscal year end) qualifies for immediate delisting, its total capital impairment at mid-year will go through a delisting review process before reaching a final decision for delisting.

Fourth, the delisting condition for disclosure violations will also be strengthened from fifteen cumulative demerit points in a year previously to ten cumulative demerit points in a year. However, for serious and intentional violation of disclosure requirements, it will be considered as a condition for delisting regardless of past demerit points.

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