South Korea Exchange Pauses Delisting Procedures Amid Procedural Challenges
What happened
South Korea’s financial regulators and the Korea Exchange tightened delisting rules, but a court later raised procedural concerns about those rules. The exchange has since paused further delisting procedures for companies failing minimum market capitalization requirements. Trading remains suspended for eight companies, including Jooyeon Tech and SHD on the Kospi, and Silla SG, Gold&S, KM Pharmaceutical, Pintel, Sejin T&S, and AFW on the Kosdaq.
From koreaherald.com
Why it matters
The court's procedural concerns led the exchange to defer further delisting procedures. However, the suspension of proceedings did not restore trading for the eight companies whose delistings were decided prior to October 2. This leaves shareholders of those companies unable to sell their holdings through normal stock trading.
From koreaherald.com
Who's involved
- Financial Services CommissionRegulatory body that tightened the exchange rules
- Financial Supervisory ServiceIntegrated financial regulator operating under the Financial Services Commission
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The entities involved
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Financial Services Commission
South Korean government agency
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