[Last updated: 1 February 2026, unless otherwise noted]

Jurisdiction of incorporation and industries.

There is no specific jurisdiction of incorporation requirement for a listed company to be eligible to list on either the KOSPI Market or the KOSDAQ Market. In principle, neither the KOSPI Market nor the KOSDAQ Market restrict companies from listing on their respective markets, though listing may be restricted if it is deemed inappropriate to raise funds through the securities market, for example, in the case of adult broadcasting, gambling, loan sharking and casino businesses, as these industries may not be in line with the public interest.

Quantitative and qualitative criteria.

Financial requirements for the KOSPI Market. A domestic or foreign listing applicant for the KOSPI Market must satisfy the requirements of either A, B, C or D as laid out below. These requirements will apply regardless of whether it is a primary or a secondary listing.

Link to Table

Financial requirements for KOSDAQ Market. A domestic or foreign listing applicant for the KOSPI Market must satisfy the requirements of either A or B below. There is no difference between a primary listing and a secondary listing as regards these requirements.

Link to Table

Technology growth companies must comply with at least one of the following:

• Equity capital of KRW 1 billion (approximately US$0.69 million); or
• Market capitalization of KRW 9 billion (approximately US$6.21 million).

Operating history. A (domestic or foreign) listing applicant for the KOSPI Market must be incorporated and operating for at least three years. This requirement does not apply to a KOSDAQ Market listing applicant.

Mandatory holding. In relation to a primary listing of domestic or foreign common shares on the KOSPI Market, any person falling under any of the following subparagraphs must hold shares, subscription rights, convertible bonds, etc. ("shares, etc.") in their possession until the period specified in the relevant subparagraph:

• The largest shareholder or a person who has a special relationship with the largest shareholder ("largest shareholder, etc."): six months from the listing date; however, if the largest shareholder is a private equity fund, the period is extended to one year from the listing date.
• The largest shareholder, etc. who has acquired shares by exercising share options after listing: six months from the listing date; however, if the largest shareholder is a private equity fund, the period is extended to one year from the listing date.
• Any person who has acquired the shares, etc. issued by way of the third-party allotment by an applicant for primary listing within one year prior to the application date for preliminary listing review: one year from the issuance date; however, if one year from the issuance date falls within six months from the date of listing, the mandatory holding period shall be extended until the date marking six-months from the listing date.
• Any person who has acquired the shares, etc. held by the largest shareholder, etc. within one year prior to the application date for preliminary listing review: six months from the listing date.
• Other shareholders that the KRX deems mandatory holding is necessary for the sake of public interest, investor protection, etc.: up to two years from the listing date after a discussion with the KRX.

Notwithstanding, the KRX may waive the mandatory holding requirements for:

• The largest shareholder, where the relevant applicant is a public interest corporation.
• The largest shareholder, etc. in cases where the relevant applicant is a company listed on an overseas securities market or a KOSDAQ-listed company for which the period of mandatory holding has elapsed as at the date of application for primary listing.
• Any person who, as a specially related person of the largest shareholder of the applicant, holds less than 100 shares or any person who are exempted from mandatory holding.
• Persons who have a special relationship with the largest shareholder holding less than 5% of the total common shares in cases where (i) their whereabouts are unknown; (ii) they have been excluded from the largest shareholder's enterprise group pursuant to Article 5 of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act; (iii) they maintain interests distinct from those of the largest shareholder, or (iv) they are in other equivalent circumstances.

In relation to a primary listing of common shares on the KOSDAQ Market, any person falling under any of the following subparagraphs must hold the shares, etc. in their possession until the period specified in the relevant subparagraph (the holding period may be extended up to two years based on the discretion of the KRX):

• The largest shareholder, etc.: six months from the listing date (in the case of primary listing of foreign shares and depository receipts (DRs) ("foreign shares, etc."), one year).
• The largest shareholder, etc. who has acquired shares by exercising share options after listing: six months from the listing date (in the case of primary listing of foreign shares, etc., one year).
• Any person who has acquired the shares, etc. issued by way of the third-party allotment by an applicant for primary listing within one year prior to the application date for preliminary listing review: one year from the issuance date;
• Any person who has acquired the shares, etc. held by the largest shareholder, etc. within one year prior to the application date for preliminary listing review: six months from the listing date (in the case of primary listing of foreign shares, etc., one year).
• Shares, etc. acquired by venture capital or professional investors through a method other than a public offering or sale whose investment period is less than two years: one month from the date of listing.
• Shares, etc. acquired by a listing sponsor whose investment period is less than six months: six months from the date of listing; however, if the disparity between the acquisition price and the public offering prices is less than 30%, the holding period shall be three months.
• Persons who have a special relationship with the largest shareholder holding less than 5% of the total common shares in cases where (i) their whereabouts are unknown; (ii) they maintain interests distinct from those of the largest shareholder, or (iii) they hold less than 100 shares.
• Other shareholders that the KRX deems mandatory holding is necessary for the sake of public interest, investor protection, etc.: up to two years from the listing date after a discussion with the KRX.

Notwithstanding the above, the KRX may waive the mandatory holding requirements for the largest shareholder, etc. in cases where the relevant applicant is a company listed on an overseas securities market or a KOSPI-listed company.

Share distribution for KOSPI Market. A domestic or foreign listing applicant for KOSPI Market must satisfy requirements A and B laid out below.

Link to Table

Share distribution for KOSDAQ Market. A domestic or foreign listing applicant for KOSDAQ Market must comply with at least one of the following as of the application date for listing:

Link to Table

Corporate governance. The KOSPI Market Listing Regulations and the KOSDAQ Market Listing Regulations (Listing Regulations) have various chapters regarding corporate governance issues. These cover notifiable matters, board composition and committee structure and review by auditors. See the section entitled Corporate governance for further information for foreign and domestic companies.

Listing sponsor. Each listing applicant must appoint a listing sponsor to assist with its listing application. A listing sponsor must be a financial investment company that has obtained authorization for its investment trading business as well as its investment brokerage business targeting securities. In cases where an applicant for listing is the company intending to conduct primary listing of foreign shares, etc. on KOSPI Market, a listing sponsor must comply with each of the following:

• As of the date of listing application, it must have in its possession foreign shares, etc., which were purchased at the public offering price or through secondary distribution, in a quantity equivalent to 5% (where the purchase amount is higher than KRW 5 billion (approximately US$3.45 million) of the number of shares publicly offered or sold in Korea after the applicant for listing has submitted its application for preliminary listing review.
• It must not sell the shares acquired pursuant to the above within six months from the date of listing. At the time of applying for preliminary listing review, it must submit to the KRX a confirmation letter stating that it will comply with this sales restriction.
• It must function as a disclosure agent for a period of two years after listing (though this will not apply where an applicant for primary listing has established an office in Korea and a person responsible for disclosure, who is capable of communicating in Korean, works full-time in the office).
• It must prepare a corporate analytical report on the listing applicant, submit the report to the KRX and post the report on its internet homepage (where it must remain for a period of two years after listing).

If three years have elapsed since the applicant for primary listing listed its shares on an overseas securities market, the first and second items above will not apply.

Where an applicant for listing is the company intending to conduct primary listing of foreign shares, etc. on the KOSDAQ Market, the listing sponsor should function as a disclosure agent for a period of two years after listing. This does not apply where an applicant for primary listing has established an office in Korea and a person responsible for disclosure, who can communicate in Korean, works full-time in the office.

Listing agent. A listing applicant who intends to primarily list foreign shares, etc. on both the KOSPI and the KOSDAQ Market must appoint a listing agent, who has an address or residence in Korea, to act as an agent for all the activities pursuant to the KOSDAQ Market Listing Regulations between the applicant and the KRX.

Interviews. The KRX may conduct multiple interviews with a domestic or foreign applicant and a listing sponsor, one interview with the representative director, and, if necessary, one on-site visit or site tour.

Minimum price. The KOSPI and KOSDAQ do not impose any requirement for domestic or foreign listed companies to have or to maintain a minimum trading price for their securities.

Currency. With respect to equity securities listed on the KOSPI Market and the KOSDAQ Market, the securities must be traded and settled in Korean Won.

Clearing and settlement. Domestic or foreign securities to be listed on KOSPI Market or KOSDAQ Market are required to be registered with the electronic registration ledger of Korea Securities Depository (KSD) operated by the KRX. The KSD is a securities settlement system used within the KOSPI Market system and the KOSDAQ Market system. Also, the listing applicant must enter into a transfer agency service contract with a transfer agent who specializes in share affairs.

Compliance guidelines and compliance officer. A domestic or foreign listed company with total assets valued at KRW 500 billion (approximately US$345 million) or more as at the end of the latest business year should establish guidelines and procedures that its employees and directors must observe in order to abide by relevant statutes when they perform their duties. Moreover, the company should appoint one or more compliance officers responsible for duties related to abiding by the compliance guidelines. The compliance officer should be a person qualified as an attorney at law, a person who is or was an assistant professor or higher teaching of law at a school for at least 5 years, a person who has worked for a listed company as an auditor, audit committee member, or compliance officer, or in the legal department for an aggregate of at least 10 years, or a person who holds at least a master's degree in law and has worked for a listed company as an auditor, audit committee member, or compliance officer, or in the legal department for an aggregate of at least 5 years.

Audit opinion. For domestic or foreign listing applicants for the KOSPI Market, the auditor's opinions on the individual and consolidated financial statements of the latest three business years should be unqualified for the latest business year and may be unqualified or qualified (excluding any qualified opinion due to scope limitation) for the most recent two prior years. For domestic or foreign listing applicants for the KOSDAQ Market, the auditor's opinions on the financial statements of the latest business year should be unqualified.

Accounting standards. The audited financial statements should be prepared in accordance with K-IFRS, while the financial statements attached to the listing application for a foreign company on both the KOSPI Market and the KOSDAQ Market should be prepared in accordance with K-IFRS, International Accounting Standards or US GAAP.

Additional qualitative requirements. In addition to the criteria described above, the following requirements are considered in the qualitative review for a listing applicant seeking a primary or secondary listing on the KOSPI Market (with respect to a foreign applicant, the qualitative review will be conducted taking into consideration the laws and regulations, the language used, the time difference and the geographical conditions of the country where the primary listing was made):

• Corporate sustainability in respect of the business, financial conditions and environments surrounding business management:
  • If there is business stability, independence of business activities and customer base and growth of sales, business sustainability will be recognized.
  • If there is a clear financial structure and contingent liabilities, financial stability will be recognized.
  • In the case of a listing applicant against which a lawsuit or legal dispute has been filed regarding such matters as patent, management right, etc., it will be recognized that such facts will not have any significant impact on the corporate management.
  • The rationale of the listing sponsor's method of calculating estimated market capitalization, which is based on the business status, industry outlook, stock market situations and the relative evaluation against a target company for comparison, etc. will be acknowledged.
• The transparency of business management will be looked at in terms of the corporate governance structure, internal control system, disclosure system and related party transactions:
  • If there is independence of business management, composition of management and independence of auditors, corporate governance will be recognized as well operated.
  • Internal control system complies with laws and regulations related to internal control.
  • If there is transparency within the accounting management and capacity to make adequate disclosures, the disclosure system will be recognized as well operated.
  • In relation to trading with related parties, trades and disclosure are adequate.
  • The listing applicant should be establishing (or planning to establish) or operating an ESG management system, including environmental protection, social responsibility, and corporate governance, for the sustainable growth of the company and society.
• The stability of business management will be judged in terms of the relationship between the stakeholders, the details and period of changes in share ownership structure, etc.
• In terms of legal nature and operating mechanisms, it will be recognized as a joint stock corporation incorporated pursuant to the Korean Commercial Code (KCC).
• In addition, it will be judged on whether it undermines public interests and the protection of investors.

Notwithstanding the above, the qualitative review requirements may be waived, and, with respect to the business performance requirements, only the requirements pertaining to the sales amount and profitability will apply (only section A above, as opposed to A through D) where a foreign listing applicant satisfies all the following:

• At least five years have elapsed since its listing on a recognized overseas securities market.
• The base market capitalization of the foreign shares, etc. that have been listed on a recognized overseas securities market as at the application date for preliminary listing review amounts to least KRW 2 trillion (approximately US$1.38 billion).
• The business performance must satisfy all the following:
  • Sales: At least KRW 2 trillion (approximately US$1.38 billion) for the latest business year and at least KRW 1 trillion (approximately US$0.69 billion) on average for the most recent three business years (if a business year is shorter than one year, it shall be deemed to be three years; the same shall apply to the case below).
  • Profitability: The income before tax from continuing operations must be at least KRW 300 billion (approximately US$207 million) for the latest business year, and the sum of income before tax from continuing operations for the latest three business years must be at least KRW 700 billion (approximately US$483 million).
• No incidents of disciplinary actions, etc. taken from an overseas stock market on which the shares are listed, the regulator or the exchange of the home country will have occurred for the latest three years.

Meanwhile, a listing applicant for the KOSDAQ Market seeking a primary or secondary listing must:

• Demonstrate its ability to survive as a going concern, considering such matters as business, financial condition, technological prowess and growth potential, and operating environment.
• Demonstrate management transparency and management stability, considering such matters as the corporate governance, internal control system, disclosure system, related party transactions, and share transactions prior to listing.
• Show that the listing of the relevant shares does not undermine investor protection and the sound growth of the KOSDAQ Market.

Continuing listing criteria.

Regarding a KOSPI-listed company, the KRX will designate the common share capital of the company as an administrative issue, if the company falls under any of the following:

• Failure to submit periodic reports: Where an annual, semi-annual, or quarterly report is not submitted by the statutory filing deadline.
• Adverse auditor's opinion: Where the auditor's audit or review opinion falls under any of the following:
  • An audit opinion on the individual or consolidated financial statements for the latest business year is qualified due to scope limitation.
  • A review opinion on the individual or consolidated financial statements for the latest semi-annual period is adverse or includes a disclaimer of opinion.
• Sub-standard share distribution: (i) Where the number of general shareholders is less than 200; or (ii) where the total number of the shares held by general shareholders is less than 5% of the floating share capital, provided that this will not apply to the following cases:
  • Where the total number of shares held by general shareholders is two million or more.
  • Where the requirement for public offerings made simultaneously in Korea and overseas was applied at the time of primary listing and the total number of shares owned by general shareholders is 700,000 or more.

  With respect to the designation of foreign shares, etc., the number of general shareholders, number of shares held by general shareholders and number of floating shares will be calculated based on the number of shares deposited in Korea and the register of holders; This requirement will not apply to a company that has listed foreign shares, etc. on an overseas securities market.

• Impairment of capital shares: Where at least 50% of the capital shares have been impaired as of the end of the latest business year. Provided that, in the case of a company that owns a subsidiary, the requirement will apply based on the capital shares and total capital (excluding non-controlling interests) as shown in the consolidated financial statements (with respect to the designation of foreign shares, etc., it will apply based on the consolidated financial statement. Provided further, in respect of foreign shares, etc. issued by companies without a subsidiary, it will apply based on the individual financial statement, prepared in accordance with the K-IFRS. Where it is impossible to judge whether a foreign company that has issued no par value shares is in the status of capital impairment based on equity capital, the criterion concerned will not apply).
• Sub-standard trading volume: Where the average monthly trading volume based on common shares for a semi-annual period is less than 1% of the floating shares as of the end of the relevant semi-annual period. Provided that this provision will not apply to cases falling under any of the following (with respect to the designation of foreign shares, etc., the number of general shareholders, the number of shares held by general shareholders and the number of floating shares will be determined based on the number of shares deposited in Korea and the register of beneficial holders prepared by the KSD):
  • Where the average monthly trading volume is 20,000 shares or more.
  • Where the total number of shares held by general investors is 20% or more of the floating shares, and the number of relevant general shareholders is 300 or more.
  • In the case of a primary listed company, it will be limited to the semi-annual period which includes the date of primary listing.
  • Where the shares were suspended from trading for 50% or more of the total number of trading days during the relevant semi-annual period.
  • Where the agreement for liquidity provision (limited only to an agreement of which period is at least six months) has been entered into as of the end of the relevant semiannual period.
• Sub-standard sales: Where the sales amount to less than KRW 30 billion (approximately US$20.7 million). In such cases, for a holding company, this figure will be based on the sales amount stated in the consolidated financial statement (with respect to the designation of foreign shares, etc., it will apply based on the consolidated financial statement. Provided that, in respect of a foreign company with listed shares, etc. that is not a foreign holding company, it has prepared financial statements in accordance with the K-IFRS and the figure will be based on the individual financial statement). This will not apply to the following cases:
  • Where the average daily market capitalization of common shares during the latest business year is KRW 100 billion (approximately US$69 million) or more.
  • In the case of a newly listed legal entity, by satisfying the management performance requirements - either by having a base market capitalization of KRW 500 billion (approximately US$345 million) or more and equity capital of KRW 150 billion (approximately US$103.5 million) or more as of the application date for new listing, or by having a base market capitalization of KRW 1 trillion (approximately US$690 million) or more as of the same date—for five consecutive business years starting from the business year immediately following the year in which the listing date falls.
• Sub-standard market capitalization (with respect to the designation of foreign shares, etc., in the case of a company that has listed DRs representing foreign shares, the market capitalization will be determined on the basis of the number of listed DRs representing foreign shares; this requirement will not apply to a company that has listed foreign shares, etc. on an overseas securities market): Where the market capitalization of a company that has listed its common shares is less than KRW 50 billion (approximately US$34.5 million) for 30 days (the number of days shall be calculated based on the trading days of the relevant common shares).
• Failure to meet corporate governance requirements: Where the obligation to appoint outside directors or establish an audit committee is violated and falls under any of the following. However, if the failure to meet requirements is due to a lack of a quorum at the general meeting of shareholders, the KRX may not designate the common stock as an administrative issue, taking into comprehensive account the company's efforts to establish a quorum, such as the adoption of an electronic voting system, as prescribed by the Enforcement Rules.
  • Where the number of outside directors in the business report for the most recent business year fails to meet the number prescribed in Article 77(1) of the KRX Listing Regulation (a listed company shall ensure outside directors constitute at least one quarter of the total number of directors. However, a listed company with total assets of KRW 2 trillion (approximately US$1.38 billion) or more as of the end of the most recent business year shall have at least three outside directors, and they must constitute a majority of the total number of directors).
  • Where the number of outside directors in the business report for the most recent business year falls below the number prescribed in Article 77(1) of the KRX Listing Regulation due to resignation, death, or other reasons, and the requirement is not met at the first general meeting of shareholders convened after the occurrence of such cause.
  • Where an audit committee has not been established in accordance with Article 78 of the KRW Listing Regulation (a listed company with total assets of KRW 2 trillion (approximately US$1.38 billion) or more as of the end of the most recent business year must establish an audit committee where at least two-thirds of the members are outside directors) in the business report for the most recent business year.
  • Where the number of audit committee members in the business report for the most recent business year falls below the composition requirements under Article 78 of the KRX Listing Regulation due to resignation, death, or other reasons, and the requirement is not met at the first general meeting of shareholders convened after the occurrence of such cause.
• Other cases: Filing for bankruptcy, application for the commencement of rehabilitation proceedings, and violations of disclosure obligations Any other cases where the KRX recognizes that the designation is necessary for public interest and investor protection, such as the occurrence of a ground for delisting.
• Where foreign company listed shares, etc. fall under any of the following:
  • The foreign company has changed its accounting standards away from the standards adopted at the time of submission of the application for preliminary listing review.
  • It was confirmed that the auditor was appointed, substituted, or dismissed in breach of the regulation of auditor qualifications.

The KRX will delist the common shares of a company, if the company falls under any of the following:

• Failure to submit periodic reports: Where any of the following items applies in relation to an annual, semi-annual, or quarterly report.
  • Where a company, having been designated as an administrative issue due to the non-submission of an annual report, fails to submit said report within 10 days of the statutory filing deadline.
  • Where a company, having been designated as an administrative issue due to the non-submission of a quarterly or semi-annual report, further fails to submit an annual, semi-annual, or quarterly report by the statutory filing deadline.
• Adverse auditor's opinion: Where the auditor's audit opinion falls under any of the following items.
  • Where the audit opinion on the separate or consolidated financial statements for the most recent business year is adverse or a disclaimer of opinion.
  • Where a company, having been designated as an administrative issue due to a qualified opinion resulting from a limitation on the scope of audit, receives a qualified opinion on the separate or consolidated financial statements for the most recent business year as well due to a limitation on the scope of audit.
• Adverse auditor's opinion for two consecutive years: Where any of the following items apply while the adverse auditor's opinion elaborated above has not been resolved.
  • Where the audit opinion on the separate or consolidated financial statements for the most recent business year is adverse, includes a disclaimer of opinion, or a qualified opinion due to a limitation on the scope of audit.
  • Where the annual report for the most recent business year is not submitted within 10 days of the statutory filing deadline.
• Sub-standard share distribution: (i) Where the number of general shareholders as at the end of the latest fiscal business year is less than 200, while also being designated as an administrative issue due to the lack of general shareholders; or (ii) where the total number of the shares held by general shareholders is less than 5% of the floating shares, while also being designated as an administrative issue due to the lack of share capital owned by general shareholders (with respect to the delisting of foreign shares, etc., the number of general shareholders, the number of shares held by general shareholders and the number of floating shares will be calculated based on the number of shares deposited in Korea and the register of holders).
• Impairment of capital shares: Where the entire amount of capital shares as at the end of the latest business year has been impaired. In such cases, for a company owning a subsidiary, the criterion concerned will apply on the basis of the capital shares and total equity (excluding non-controlling interests) on the consolidated financial statements (with respect to the delisting of foreign shares, etc., it will be based on the application methods noted in each of the following: (a) based on the consolidated financial statement, except where a foreign company with listed shares, etc. does not own a subsidiary, in which case it will be based on the individual financial statement, prepared in accordance with the K-IFRS; and (b) where it is impossible to judge whether a foreign company that has issued no par value shares is in the status of capital impairment on the basis of equity capital, the criterion concerned will not apply).
• Sub-standard trading volume (with respect to the delisting of foreign shares, etc., the number of general shareholders, the number of shares held by general shareholders and the number of floating shares will be calculated based on the number of shares deposited in Korea and the register of holders): Where the average monthly trading volume of common shares is less than 1% of the floating shares as of the end of a semi-annual period following the semi-annual period when the common shares concerned were designated as an administrative issue due to the lack of trading volume.
• Sub-standard market capitalization (with respect to the delisting of foreign shares, etc., where a company that has listed DRs representing foreign shares, the market capitalization will be determined on the basis of the number of listed DRs representing foreign shares): Where the market capitalization of a company that has listed its common shares does not satisfy any of the following for 90 days (the number of days shall be calculated based on the trading days of the common shares concerned) after being designated as an administrative issue due to the lack of market capitalization:
  • The market capitalization must be minimum KRW 50 billion (approximately US$34.5 million) for at least 10 consecutive days; and
  • The number of days with the market capitalization of at least KRW 50 billion (approximately US$34.5 million) must equal or exceed 30 days.
• Failure to Meet Corporate Governance Requirements: Where a company is designated as an administrative issue due to a violation of the obligation to appoint outside directors or to establish an audit committee, and fails to resolve such grounds in the most recent business year. However, this delisting criterion shall not apply if the failure to meet corporate governance requirements was caused by a lack of a quorum at the general meeting of shareholders.
• In relation to foreign companies with listed shares, etc., if any of the following apply:
  • Having been designated as an administrative issue due to the breach of the restriction on the change of accounting standards, the accounting standards have not been changed back by the statutory deadline for submission of the annual report or the half-yearly report, which is the initial deadline that comes after the date of designation as an administrative issue.
  • Having been designated as an administrative issue, it has failed to resolve the relevant grounds for designation as an administrative issue by the first statutory deadline for submission of the annual report or the half-yearly report after the date of designation as administrative issue.
  • Where the number of listed DRs representing foreign shares is less than 100,000.
  • Where a foreign company with listed shares, etc. has listed foreign shares, etc. on an overseas securities market, which provides grounds for delisting those shares from the relevant overseas securities market.
• The KRX shall delist common stocks if, as a result of a substantive review of listing eligibility for a listed company falling under any of the following, it deems delisting necessary upon comprehensive consideration of business continuity, management transparency, public interest, and investor protection.
  • Where a company, having been designated as an administrative issue due to impairment of capital, remains in a state where 50% or more of its capital stock is impaired as of the end of the most recent business year.
  • Where a company, having been designated as an administrative issue due to insufficient sales revenue, reports sales revenue (based on consolidated financial statements for holding companies) of less than KRW 30 billion (approximately US$20.7 million) as of the end of the most recent business year. However, an exception is made if the average market capitalization of its common stock during the most recent business year is KRW 100 billion (approximately US$69 million) or more.
  • Where a company, having been designated as an administrative issue due to an application for the commencement of rehabilitation proceedings, faces a dismissal of said application, cancellation of the decision to commence proceedings, non-approval of the rehabilitation plan, or a court decision to terminate rehabilitation proceedings.
  • Where a company, having been designated as an administrative issue due to violations of disclosure obligations, has accumulated 15 or more additional penalty points for unfaithful disclosure within the last year, or is designated as an unfaithful disclosure corporation for violating disclosure obligations through willful misconduct or gross negligence regarding matters that significantly affect corporate management.
  • Where it is discovered that documents submitted during the listing or delisting review process contain false statements or omissions of material facts concerning investor protection.
  • Where the business division scheduled to survive as of the submission date of the Material Fact Report for a division or merger-after-division fails to meet any of the requirements regarding equity capital, sales revenue, profitability, or an unqualified review opinion in the auditor's review report. However, an exception is made if the KRX deems it necessary, such as in the case of a division for conversion into a holding company.
• Other cases: A company may also be delisted in cases such as the occurrence of grounds for dissolution under the law, final default or suspension of bank transactions, incorporation into a holding company, restrictions on stock transfer, or violations of back-door listing criteria.

As regards a KOSDAQ-listed company, the KRX will designate the common shares of the company as an administrative issue, if the company suffers any of the following:

• Sub-standard share distribution: (i) Where the number of general shareholders is less than 200; or (ii) where the total number of the shares held by general shareholders is less than 20% of the floating shares, provided that this will not apply in the following instances:
  • Where the number of minority shares is 300 or more, and the number of shares held by the minority shareholders is at least one million and 10% or higher of the number of floating shares; and
  • Where the relevant shares are listed on a foreign securities market.

  With respect to the designation of foreign shares, etc., where DRs representing foreign shares have been listed, it will be calculated based on the number of listed DRs representing foreign shares; the number of minority shareholders, the number of shares held by minority shareholders and the number of floating shares will be calculated based on the number of shares deposited in Korea; and in case of a foreign company listed on the KOSDAQ Market, which is listed on a foreign securities market, the requirement regarding the number of shares held by minority shareholders will not apply.

• Sub-standard sales (does not apply to foreign shares, etc.): Where sales in the latest business year were less than KRW 10 billion (approximately US$6.9 million). However, this shall not apply to the periods specified for the following companies:
  • Companies with unrealized profits or technology-growth companies as prescribed by the Enforcement Rules: For five consecutive business years, including the business year in which the initial listing date (or the date of merger-listing in the case of a SPAC merger) falls. However, if the period from the listing date to the end of the business year in which the listing date falls is less than three months, it shall be the business year of listing and the subsequent five business years.
  • Technology-growth companies prescribed by the Enforcement Rules, cases where an innovative pharmaceutical company under the Special Act on Promotion of and Support for Pharmaceutical Industry meets the requirements prescribed by the Enforcement Rules as of the end of the most recent business year: The most recent business year.
  • Companies with a daily average market capitalization of KRW 60 billion (approximately US$41.4 million) or more for the most recent business year, calculated according to the method prescribed by the Enforcement Rules: The most recent business year.
• Incurrence of loss before tax from continuing operations (does not apply to foreign shares, etc.): Where there has been a loss from continuing operations before tax of at least KRW 1 billion (approximately US$0.69 million), which exceeds 50% of equity capital as at the end of the relevant business year for two out of the three latest business years, respectively, and there is a loss before tax from continuing operations for the latest business year.
• Impairment of capital shares (with respect to the designation of foreign shares, etc., this will not apply where the company has issued no par value shares): Where at least 50% of the capital shares have been impaired as at the end of the latest business year.
• Sub-standard market capitalization (with respect to the designation of foreign shares, etc., where DRs representing foreign shares have been listed, it will be calculated based on the number of listed DRs representing foreign shares): Where the market capitalization of common shares of a common-shares-listed company falls below KRW 30 billion (approximately US$20.7 million) and such situation continues for 30 consecutive business days.
• Sub-standard equity (does not apply to foreign shares, etc.): Where the equity falls below KRW 1 billion (approximately US$0.69 million) of the equity as at the end of the latest business year.
• Sub-standard trading volume (with respect to the designation of foreign shares, etc., where DRs representing foreign shares have been listed, it will be calculated based on the number of listed DRs representing foreign shares; the number of minority shareholders, the number of shares held by minority shareholders and the number of floating shares will be calculated based on the number of shares deposited in Korea): Where, in terms of the trading volume on the KOSDAQ Market, the average monthly trading volume of common shares in a quarter is less than 1% of the number of floating shares.
• In relation to foreign companies with listed shares, etc., if any of the following apply:
  • Where it is confirmed through the annual report or semi-annual report that the accounting standards have been changed to another type of standards other than the standards adopted at the time of submitting the application for preliminary listing review.
  • Where it is confirmed through the annual report or semi-annual report that an auditor has been appointed in violation of the regulation of auditor qualifications.

The KRX will delist the common shares of a company, if the company suffers any of the following:

• Adverse auditor's opinion: Where the audit opinion on the separate or consolidated financial statements for the most recent business year is adverse, a disclaimer of opinion, or a qualified opinion due to a limitation on the scope of audit.
• Adverse auditor's opinion for two consecutive years: Where any of the following items applies while the adverse auditor's opinion elaborated above has not been resolved.
  • Where the audit opinion on the separate or consolidated financial statements for the most recent business year is adverse, includes a disclaimer of opinion, or a qualified opinion due to a limitation on the scope of audit.
  • Where the business report for the most recent business year is not submitted within 10 days from the day following the statutory filing deadline.
• Sub-standard share distribution (does not apply to foreign shares, etc.): Where the company that has been designated as having an administrative issue due to below standard share distribution fails to resolve the shortfall in its share distribution within one year.
• Impairment of capital shares (does not apply to foreign shares, etc.): Where the total capital shares have been impaired as at the end of the latest business year.
• Sub-standard trading volume (does not apply to foreign shares, etc.): Where, while being designated as an administrative issue due to below standard trading volumes, the shortfall in trading volume pursuant to the relevant regulation continues into the following quarter.
• Sub-standard market capitalization (with respect to the delisting of foreign shares, etc., where DRs representing foreign shares have been listed, it will be calculated based on the number of listed DRs representing foreign shares): Where, having been designated as an administrative issue, the market capitalization of the concerned common shares has failed to meet at least one of the following requirements during the next 90 business days:
  • The market capitalization should be minimum KRW 30 billion (approximately US$20.7 million) for at least 10 consecutive days.
  • The market capitalization should be minimum KRW 30 billion (approximately US$20.7 million) for at least 30 days during the period.
• In relation to foreign companies with listed shares, etc., if any of the following apply:
  • Having been designated as an administrative issue due to the breach of the restriction on the change of accounting standards, the accounting standards have not been changed back by the statutory deadline for submission of the annual report or the half-yearly report, which is the initial deadline that comes after the date of designation as an administrative issue.
  • Having been designated as an administrative issue due to the breach of the appointment of a statutory auditor, a statutory auditor has not been appointed by the first statutory deadline for submission of the annual report or the half-yearly report after the date of designation as administrative issue.
  • Where the number of listed DRs representing foreign shares is less than 100,000.
  • Where a foreign company with listed shares, etc. has listed foreign shares, etc. on an overseas securities market, which provides grounds for delisting those shares from the relevant overseas securities market.