[Edaily Reporter Kwon Oh Seok ] Following the court’s decision to grant a motion for a provisional injunction suspending delisting proceedings due to insufficient market capitalization, the Korea Exchange (hereinafter “the Exchange”) has decided to temporarily suspend the follow-up procedures for delisting. However, the designation of the stock as a “monitored stock” will remain in effect, and the Exchange has stated that it will file an objection with the court to fully present its case.

According to the Korea Exchange on the 7th, the Seoul Southern District Court granted a motion for a preliminary injunction filed on the 2nd by JOOYONTECH(044380)and KMPHARMACEUTICAL Co.,Ltd.(225430)against the Korea Exchange to suspend the effect of the delisting decision.
In its ruling, the court stated regarding the market capitalization criterion itself that “it is difficult to readily conclude that the purpose is unjust, the means are inappropriate, or the threshold amount is excessive.”
However, it is reported that the court pointed out issues regarding the guarantee of procedural participation rights—such as the right of listed companies to file objections—during the process of tightening the criteria, as well as concerns about the early implementation of the new standards. The court dismissed the application to suspend the effect of the decision to designate the company as a “monitored stock” but granted the injunction only regarding the suspension of the delisting decision.
Accordingly, the Korea Exchange (KRX) plans to respect the court’s preliminary injunction decision and provide a full explanation through the future objection process.
Regarding market measures, a KRX spokesperson explained, “Taking into account the intent of the court’s decision, we will maintain the ‘designation as a managed stock upon falling below the market capitalization threshold’ rule, which has been in effect since July 1. However, considering the potential for increased uncertainty among companies and investors due to the spread of similar disputes, we have suspended the follow-up delisting procedures following the designation as a managed stock since the 2nd,” adding, “We plan to continue this suspension.”
For the eight companies whose trading was suspended prior to the 2nd due to a decision to delist them for failing to meet the market capitalization requirement, the trading suspension will remain in effect.
There are a total of five listed companies whose trading was suspended prior to the commencement of liquidation trading: JOOYONTECH on the KOSPI market, and SILLA SG CO., LTD.(025870), Gold&S(035290), KMPHARMACEUTICAL Co.,Ltd.(225430), and Pintel Co., Ltd.(291810) on the KOSDAQ market. There are a total of three listed companies whose trading was suspended while liquidation trading was in progress: SHIN HWA DYNAMICS(001770)on the KOSPI market, and SEJIN T.S CO., LTD.(067770) and A.F.W Co., Ltd(312610) on the KOSDAQ market.