[Edaily Reporter Shin Ha-yeon ] The Korea Exchange (KRX) is continuing to overhaul its systems—from listing reviews to disclosure and delisting—to enhance the credibility of the KOSDAQ market. The exchange is pursuing follow-up measures in response to a recent court decision that put the brakes on the delisting of companies with market capitalizations below the required threshold, and is reviewing improvements to disclosure violations by strengthening or relaxing sanctions depending on the severity of the offense. It is also refining the evaluation system used to assess the growth potential of companies listed under the technology exception category.

Kim Seong-cheon, Head of the Disclosure System Team in the Disclosure Division of the KOSDAQ Market Headquarters, stated at the KOSDAQ policy session of “Korea Premium Week” held on the 6th regarding the court’s recent granting of a provisional injunction suspending the delisting decision for companies with insufficient market capitalization: “Follow-up measures are being pursued by the Listing Department and are still under internal review,” adding, “We expect to provide an explanation of the specific details soon.”

Previously, on the 2nd, the Seoul Southern District Court granted separate applications for provisional injunctions filed by KOSPI-listed company JOOYONTECH(044380)and KOSDAQ-listed company KMPHARMACEUTICAL Co.,Ltd.(225430)against the stock exchange to suspend the effect of their delisting decisions. The court ruled that classifying a failure to meet the market capitalization threshold as a formal ground for delisting—without allowing for objections or opportunities to present a defense—excessively infringed upon the companies’ right to participate in the proceedings. It also found that the supplementary provisions, which brought forward the implementation date of the strengthened criteria, violated the principle of proportionality.

Consequently, on the same day, the exchange suspended the liquidation trading of SEJIN T.S CO., LTD.(067770)and A.F.W Co., Ltd(312610), which had been in liquidation trading following delisting decisions due to falling below the market capitalization threshold. As the possibility of legal challenges by companies in similar situations has been raised, uncertainty surrounding the application and procedures of the stricter delisting criteria has increased.

Regarding sanctions for disclosure violations, the exchange plans to review improvements aimed at adjusting penalties based on the severity of the violation. Team Leader Kim stated, “We plan to continue strengthening sanctions for serious matters or intentional, repeated violations with no room for improvement,” adding, “On the other hand, we intend to improve the system to somewhat ease sanctions for minor violations.”

The explanation indicates that the system will be refined to account for cases where penalty points accumulate due to minor violations, even as sanctions—such as substantive reviews of listing eligibility following disclosure violations—have been strengthened. To reduce violations arising from a lack of understanding of disclosure regulations, the authority also plans to mandate disclosure system consulting for newly listed companies and firms with a history of non-compliant disclosures.

At the market entry stage, the exchange is refining its evaluation system for assessing the growth potential of technology companies. Lee Seok-woo, Head of the Technology Listing Review Team in the Technology Company Listing Division, noted, “We are moving in a direction that simultaneously refines the technology-based special listing process itself while enhancing market trust centered on investor protection.”

To improve the specialized evaluation system, the exchange commissioned an external research project in May of this year and gathered industry feedback through a public hearing last month. After collecting additional input, it plans to finalize a detailed reform plan by the end of the year. The exchange is reviewing measures such as developing a standard technology evaluation model that reflects industry changes, revising evaluation indicators, enhancing the efficiency and fairness of the evaluation process, and strengthening oversight of evaluation agencies.

Team Leader Lee stated, “Since specialized evaluation agencies serve as gatekeepers in assessing technological capabilities, we have been continuously updating the system governing these agencies.” He explained that the exchange also plans to expand qualitative review criteria—which reflect industry-specific characteristics—to three additional sectors, including the defense industry, by the end of the year.

Post-listing oversight of companies listed under the technology exception will also be strengthened. The exchange announced that, in July of this year, it tightened the requirements for delisting deferrals related to insufficient revenue or large-scale losses to apply only to companies that have presented milestones through “Value-Up” disclosures. Companies that shift their primary business to a sector unrelated to their originally declared technology field have been added to the list of those subject to substantive delisting reviews.

In addition, efforts are underway to expand information disclosure by listed companies. The exchange stated that it is internally discussing the introduction of voluntary disclosure for KOSDAQ Corporate Governance Reports next year, followed by phased mandatory disclosure starting in 2028, and plans to consult with financial authorities on the matter. It also intends to expand the requirement for newly listed companies to hold investor relations (IR) briefings to improve investors’ access to corporate information.

Meanwhile, sessions covering KOSDAQ policies and outlooks for major industries were held during Korea Premium Week that day. The KOSDAQ policy session covered key improvements to listing and delisting systems, measures to foster innovative companies through technology-based special listing and the KONEX market, and strategies to enhance investor confidence.