[Edaily Reporter Kim Hyung-il ] Companies on the KOSDAQ market facing delisting due to falling below the minimum market capitalization threshold are adopting divergent strategies. While some are seeking to maintain their listed status and continue trading by transferring to the KONEX market—a stock market designed for early-stage small and medium-sized enterprises—others are attempting to remain on KOSDAQ through share buybacks, fundraising, and improving their financial performance.

According to the Korea Exchange’s corporate disclosure channel, KIND, on the 14th, the KOSDAQ-listed companies designated as “monitored stocks” in July due to falling below the minimum market capitalization threshold include WonpungMulsan(008290), BioInfra Co.,Ltd.(199730), NC& Co., Ltd.(092600), YeSUN Tech Co., Ltd.(250930), Pintel Co., Ltd.(291810), SEJIN T.S CO., LTD.(067770), RYUK-IL C&S., Ltd(191410), A.F.W Co., Ltd(312610), Gold&S(035290), Soosung Webtoon(084180), OSP Co., Ltd(368970), SILLA SG CO., LTD.(025870), and KMPHARMACEUTICAL Co.,Ltd.(225430). With the exception of WonpungMulsan, for which delisting has already been decided, attention is focused on the responses of the companies still facing the possibility of delisting.

SILLA SG CO., LTD. decided on the 11th to transfer its listing to the KONEX market. This is the first such case since the announcement on the 4th of a system allowing companies with insufficient market capitalization to transfer to KONEX without a liquidation sale. SILLA SG CO., LTD. will have the KOSDAQ liquidation sale and delisting procedures suspended until the results of its KONEX initial listing review are announced. However, if the initial listing review is rejected or suspended, the KOSDAQ delisting and liquidation sale procedures will proceed.

SILLA SG CO., LTD. qualified for the KONEX transfer listing because it posted operating profits in 2023 and 2024 out of the most recent three fiscal years.

In addition to SILLA SG CO., LTD., other companies classified as eligible for a transfer to KONEX include SEJIN T.S CO., LTD., RYUK-IL C&S., Ltd., and OSP Co., Ltd. These companies have met the requirements for a KONEX transfer—such as posting operating profits in two of the last three fiscal years or posting an operating profit in one fiscal year while maintaining equity capital of at least 20 billion won.

However, companies eligible for a move to KONEX appear to be prioritizing remaining on KOSDAQ through self-rescue measures. SEJIN T.S CO., LTD. is not considering a move to KONEX and is instead focusing on recovering its market capitalization. A SEJIN T.S CO., LTD. official stated, “We are not even considering a move to KONEX,” adding, “We will do our best to remain on KOSDAQ.”

SEJIN T.S CO., LTD.’s current market capitalization stands at approximately 20.8 billion won. Although this exceeds the 20 billion won threshold, the key challenge is maintaining a stable market capitalization, as the company must sustain this level for a certain period to be removed from the watchlist.

To remain on KOSDAQ, SEJIN T.S CO., LTD. has been buying back its own shares three times this year. Following the acquisition of 493,809 shares through the first buyback in July, the company purchased an additional 700,805 shares in the second round. Consequently, the company’s treasury stock, including its existing holdings, has increased to 1,295,518 shares, accounting for 15.43% of the issued shares. On the 31st of last month, the company decided on a third share buyback worth 1 billion won and has so far executed approximately 200 million won of that amount.

OSP Co., Ltd is also prioritizing remaining on KOSDAQ rather than considering a move to KONEX. A company official stated, “We are making every effort to maintain our KOSDAQ listing.” OSP Co., Ltd’s current market capitalization stands at approximately 29 billion won, significantly exceeding the 20 billion won threshold. Although the company meets the market capitalization requirement as its stock price has recovered since being designated as a “monitored stock,” it must maintain this level for a certain period to be removed from the monitored stock list.

OSP Co., Ltd has also taken steps to secure funds to remain on KOSDAQ. Last month, it raised 2 billion won in working capital through a third-party private placement. The company issued 1,042,753 shares and plans to use the entire amount raised for working capital.

In addition to share buybacks and fundraising, both companies are working to improve their performance through their core businesses. SEJIN T.S CO., LTD. supplies optical sheets to companies such as SamsungElectronics(005930)and LGELECTRONICS(066570), and returned to operating profitability in the first half of this year. OSP Co., Ltd. supplies dry pet food via an Original Design Manufacturer (ODM) model, and in the first half of this year, its revenue increased by 14.2% year-over-year, while it returned to operating profitability. Based on performance improvements driven by self-rescue measures and their core businesses, both companies share a common strategy of maintaining their KOSDAQ listings by meeting market capitalization requirements.