The Financial Services Commission approved a set of revision proposals to the Korea Exchange (KRX) listing regulations at the 9th regular meeting held on May 13. The FSC’s approval today 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.
Key Revision Details
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.
Along this line, there have been also changes in specific standards and procedures to prevent the occurrence of temporary stock price pumps for avoiding delisting. Previously, companies went on the delisting watch list if they failed to stay above the market cap threshold for thirty consecutive trading days during a period of ninety trading days from the time of being designated on the watch list, but could avoid delisting if they were able to stay above the market cap threshold for ten consecutive trading days and thirty cumulative trading days during that time. However, this market cap requirement will be strengthened with the implementation of the revised rules. During the period of ninety trading days after being designated on the watch list, companies will need to stay above the market cap threshold for forty-five consecutive trading days or face delisting.
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.
On micro-cap stocks, the revised rules also include measures that will help to address the problem of companies conducting share consolidations or capital reductions in a repetitive or excessive manner to avoid being subject to delisting. In this regard, under the revised rules, if a company has engaged in a share consolidation or a capital reduction in the recent year, it will be prohibited to carry out another share consolidation or capital reduction for ninety trading days from the time of being designated on the micro-cap watch list. For ninety days after being designated on the micro-cap watch list, the company will also be prohibited from engaging in a share consolidation or a capital reduction in a ratio greater than 10-to-1.
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.
Implementation Schedule
The upward adjustment of market cap thresholds for delisting will take place in two stages—first from July 1, 2026 and then from January 1, 2027. The newly created micro-cap stock criteria and the strengthened disclosure violation standard for delisting will take effect from July 1, 2026. The semi-annual assessment of total capital impairment for delisting will take place starting with the 2026 semi-annual reporting.
* Please refer to the attached PDF for details.