[Edaily Reporter Kim Hyung-il ] With the delisting process for companies falling short of the minimum market capitalization requirement being postponed, stock prices of related KOSDAQ-listed companies are surging. However, these companies still face challenges, as their designation as “monitored stocks” remains in effect. Additionally, amid uncertainty among retail investors regarding whether these companies will remain listed, there are calls for the system to be operated in a way that balances the companies’ intrinsic value with investor protection.

According to MP Doctor on the 12th, YeSUN Tech Co., Ltd.(250930)closed at 1,508 won, up 30% from the previous trading day, with a market capitalization of 10 billion won. BioInfra Co.,Ltd.(199730)also closed at 1,173 won, up 29.90%, with a market capitalization of 5.7 billion won. Castelbajac Co., Ltd.(308100)closed at 413 won, up 26.69%, with a market capitalization of 10.7 billion won. This stands in contrast to the KOSDAQ index, which closed at 849.19, down 43.08 points (4.83%) from the previous trading day. This is interpreted as reflecting expectations that the company will be able to maintain its listing following a stay of delisting proceedings. YeSUN Tech Co., Ltd. has hit the daily price limit for four consecutive trading days since the 6th, while BioInfra Co.,Ltd. and Hyungji Global continued their upward trend after hitting the daily price limit on the 8th.

However, the suspension of delisting proceedings does not guarantee that the companies will remain listed. The exchange decided to maintain their designation as “monitored stocks” due to failing to meet market capitalization requirements but to suspend the subsequent delisting proceedings following that designation. This measure follows the court’s decision to grant a preliminary injunction suspending the effectiveness of the delisting decisions for JOOYONTECH(044380)and KMPHARMACEUTICAL Co.,Ltd.(225430). The court dismissed the motion to suspend the designation as a “monitored stock” but granted only the motion to suspend the delisting decision. The exchange plans to clarify the relevant details through a future appeal of the preliminary injunction.

Concerns among retail investors regarding the uncertainty of maintaining listing status also persist. Complaints have been posted in stock discussion forums suggesting that retail investors are being forced to bear the burden due to changes in the delisting regulations. This is interpreted as reflecting concerns that, despite efforts to improve performance and enhance shareholder value, companies may still face the risk of delisting if they fail to meet market capitalization requirements.

In fact, many of these companies have a significant number of small shareholders. According to this year’s semi-annual report, BioInfra Co.,Ltd. has 7,030 small shareholders, accounting for 99.87% of all shareholders, and the shares they hold represent 39.59% of the total issued shares. YeSUN Tech Co., Ltd. has 5,597 small shareholders, who make up 99.8% of all shareholders, and their stake amounts to 36.84%. Hyungji Global has 11,372 small shareholders, whose combined stake reaches 69.6%.

Even companies experiencing improving financial performance face the challenge of meeting the requirements for maintaining their listing status. In the first half of this year, YeSUN Tech Co., Ltd.’s consolidated revenue reached 21.5 billion won, an 11% increase compared to the same period last year. Its operating profit margin also improved from -6.2% in the first half of last year to 3.9% in the first half of this year. Although financial performance continues to improve, meeting the market capitalization requirement remains a separate challenge.

An IR representative at YeSUN Tech Co., Ltd. explained that it is difficult to adapt to regulatory changes—such as the earlier implementation of market capitalization-based delisting criteria and the granting of grace periods for certain requirements. Pointing out that even companies with improving performance could face the risk of delisting based on market capitalization criteria, the company stated its intention to continue its IR activities and efforts to improve profitability.

For BioInfra Co.,Ltd., the key issue is whether it can expand sales and improve profitability following investments in new businesses. In a report, the independent research firm ARIS analyzed that BioInfra Co.,Ltd. invested a total of 16.3 billion won in new businesses from 2023 through the first half of this year, including personnel costs, facility investment costs, and operating expenses. ARIS projected that earnings would improve based on the recovery of existing businesses and revenue growth from new ventures. It forecast that revenue would increase to approximately 35.4 billion won in 2027 and 41.6 billion won in 2028, and predicted that the company would return to an annual profit in 2027, driven by the recovery of existing businesses and the new ventures reaching their break-even point.

Some have pointed out the limitations of judging a company’s value based solely on market capitalization. A capital market official stated, “For some companies, the value of their held assets—such as real estate—and their business value may not be fully reflected in their market capitalization,” adding, “There are limits to delisting companies solely based on market capitalization, even if they are operating normally and working to improve their performance.”

There are also calls for listed companies themselves to strengthen communication with investors. A capital market official emphasized, “Some listed companies neglect communication with investors by rejecting investor relations (IR) requests or citing a lack of business changes,” adding, “As listed companies, they need to regularly report on their business status and communicate with investors.”