South Korea Delays KOSDAQ Listing Rule Hike Amid Volatility
South Korea's finance minister postponed KOSDAQ market listing rule changes by six months. The decision follows concerns about rising interest rates and global market volatility.
Seoul Reviews Market Stabilisation Efforts
South Korea's Finance Minister Koo Yun-cheol reviewed financial market stability measures on Friday. The Ministry of Finance and Economy confirmed continued upward pressure on global interest rates. Increased government bond issuance and corporate bond sales by artificial intelligence businesses drive this pressure.
Officials also noted rising crude oil prices, linked to Middle East tensions, could increase market volatility. The government pledged close monitoring and support for vulnerable borrowers.
KOSDAQ Listing Rule Hike Postponed
Officials assessed reforms for the tech-focused KOSDAQ market. A planned increase in the minimum market capitalisation (market cap) requirement for continued listing is now delayed. The threshold was to rise from 20 billion won (approximately $15 million) to 30 billion won. This change, initially for January 2027, will now take effect in July 2027. The delay allows the market more time to recover from recent volatility.
Mitigating Delisting Impact
The government also introduced measures to soften delisting impacts. Companies meeting specific financial criteria can transfer their listings. They can move from KOSDAQ to the Korea New Exchange (KONEX) without a liquidation trading period. KONEX focuses on small businesses. This aims to cushion the transition for affected firms. The ministry seeks to maintain market access for eligible companies.
The KOSDAQ rule delay offers relief to smaller listed companies. It provides additional time for firms to meet higher capitalisation thresholds. This move demonstrates Seoul's focus on market stability and investor protection. Asian investors should watch for further policy adjustments if global interest rates or oil prices continue to fluctuate. The delay affects capital raising and market access for tech firms in South Korea.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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