The Korea Exchange strengthened listing maintenance conditions a month ago to reduce insolvent companies. The market capitalization threshold for KOSPI was raised to 30 billion won and for KOSDAQ to 20 billion won. Listings of 'penny stocks' with share prices below 1,000 won may also be terminated if they are maintained for a certain period. Based on the average market capitalization in July, 192 companies, or 7.4% of all listed companies, did not meet the listing maintenance conditions. It is expected that the lower limit of market capitalization will be further increased next year, and the number of risky companies will increase. Without stock price recovery or capital increase, more companies may be at risk of being designated as management stocks.
