[Edaily Reporter Kwon Oh Seok ] “Market capitalization (hereinafter ‘market cap’) is an exogenous variable that companies cannot artificially control. Delisting a company solely because its market cap fell below the threshold due to a decline in its stock price is an unprecedentedly excessive and contradictory measure.”

In an exclusive interview with E-Daily on the 4th, Jeong Young-hoon, Vice President of Pintel Co., Ltd., strongly criticized the unfairness of the delisting system being pushed by financial authorities. Previously, when Pintel Co., Ltd. was designated as a “monitored stock” and delisting procedures were initiated due to falling below the market cap threshold (20 billion won), the company filed a petition with the court against the Korea Exchange (KRX) seeking a preliminary injunction to suspend the delisting decision, as well as a main lawsuit.
Vice President Jeong argued, “Companies listed under the Technology Special Listing Program are granted a five-year grace period for revenue requirements to facilitate ‘J-curve’ growth,” adding, “It is a policy misstep for the government to grant a grace period and then use market capitalization as a yardstick to force these companies out of the stock market.”
Pintel Co., Ltd., a company specializing in artificial intelligence (AI) video analysis, has invested approximately 45 billion won in research and development (R&D) since its 2022 listing, culminating in the completion of its “Prevax 4.0” software. The company has cultivated its technological capabilities while receiving government recognition, including past awards such as the Minister of Land, Infrastructure, and Transport Award, the Minister of Science and ICT Commendation, and the Ministry of SMEs and Startups Commendation, as well as government subsidies totaling several billion won.
According to the financial investment industry, Pintel Co., Ltd.—which entered the KOSDAQ market through a technology-based special listing—along with Shaperon Inc.(378800), E8IGHT Co., Ltd(418620), Noul Co., Ltd.(376930), Moadata(288980), and UDMTEK Co.,Ltd.—have recently been designated as “monitored stocks” due to falling below the minimum market capitalization threshold and being classified as penny stocks. Most of these companies went public between 2021 and 2024.
Originally, the technology-based special listing system allows companies to go public based on an evaluation of their technological capabilities and growth potential rather than current revenue or profits. Accordingly, companies that fail to meet the revenue threshold (less than 3 billion won) are granted a five-fiscal-year grace period, and if they still fall short, they are given an additional improvement period of up to one year. Nevertheless, financial authorities raised the delisting threshold to 20 billion won in market capitalization starting this July. Meanwhile, the KOSDAQ index plummeted from above the 1,200 mark to below 700, triggering a series of companies being designated as “monitored stocks.”
Pintel Co., Ltd.’s revenue was approximately 5.8 billion won last year and about 4.4 billion won for the first half of this year; while its revenue does not fall short of the requirement, trading has currently been suspended because its market capitalization falls short of the 20 billion won threshold. Pintel Co., Ltd.’s market capitalization is approximately 5.7 billion won.
Vice President Jeong emphasized, “Issuing a delisting notice on the 46th trading day simply because the company failed to meet the requirement of 45 consecutive trading days out of 90 is a clear error; the notice should be issued only after the 90 trading days have elapsed,” adding, “This also violates the ‘principle of proportionality,’ which prohibits excessive punishment.” In particular, he explained that the moment a company is designated as a “monitored stock,” its ability to raise funds—including attracting new investments, conducting capital increases, and extending credit from financial institutions—is blocked, effectively cutting off any opportunity for recovery.
Industry observers believe that Pintel Co., Ltd. has a high chance of winning its case, as the court previously granted preliminary injunctions for JOOYONTECH(044380)and KMPHARMACEUTICAL Co.,Ltd.(225430), which were in similar situations, and Pintel Co., Ltd.’s first hearing is scheduled for the 5th.
Vice President Jeong stated, “While failing companies should be strictly delisted, companies that went public based on technology should be given time to prove their worth through that technology,” adding, “To mitigate the shock to the market, it seems advisable to establish a detailed roadmap over the next year and then implement the delisting system starting in 2028.”