Following the tightening of delisting regulations for penny stocks and companies with insufficient market capitalization in July, Coiz has become the first company to face delisting. The KOSDAQ-listed firm entered an orderly trading phase on September 3 due to its failure to meet market capitalization requirements.
On the first day of the orderly trading period, Coiz's stock fell 34.72% to 329 won. The company will continue this trading phase for seven days until September 11, before being officially delisted on September 14.
In July, financial authorities strengthened regulations, stating that companies listed on the KOSPI with a market capitalization below 30 billion won and those on the KOSDAQ below 20 billion won for 30 consecutive trading days would be designated as management category stocks. Additionally, new delisting criteria for penny stocks were implemented, which state that if a stock trades below 1,000 won for 30 consecutive trading days, it will also be classified as a management category stock. If a company fails to exceed the market capitalization threshold or maintain a stock price above 1,000 won for at least 45 out of 90 trading days after being designated, it will face delisting procedures.
With Coiz's delisting, more companies are expected to follow suit. Potential candidates for delisting include Wonpung Mulsan, Silla SG, KM Pharmaceutical, Susung Webtoon, and Gold & S.
Wonpung Mulsan has been under management category designation since July 3 due to insufficient market capitalization and has remained below the threshold for 41 trading days. If this situation continues, it is expected to face delisting on September 8. Silla SG and KM Pharmaceutical received notices regarding delisting concerns due to insufficient market capitalization after the market closed on August 31, while Susung Webtoon and Gold & S also received similar announcements after the market closed on September 2.
These companies have yet to resolve their delisting issues. Silla SG and KM Pharmaceutical are expected to face delisting concerns on September 14, while Susung Webtoon and Gold & S are projected to do so on September 16.
As concerns over delisting grow, these stocks experienced significant declines on the same day. Wonpung Mulsan fell 7.99%, while Silla SG dropped 15.27%, KM Pharmaceutical decreased by 18.15%, Susung Webtoon plummeted 28.70%, and Gold & S fell 27.12%.
By the end of the year, the number of companies facing delisting is expected to increase. According to the Korea Exchange, as of today, there are 84 listed companies designated as management category stocks due to insufficient market capitalization and trading below 1,000 won.
Previously, before the strengthened delisting regulations were applied in July, a case of delisting due to insufficient market capitalization occurred in the securities market. Yeojeong Industrial was delisted at the end of June, marking the first instance of delisting for this reason in the securities market.
* This article has been translated by AI.
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