Seoul court halts KRX delistings over market cap rules

A Seoul court on Oct. 2 granted injunctions filed by Jooyontech and KM Pharmaceutical, suspending their delistings from KOSPI and KOSDAQ under market capitalization rules. The court found the Korea Exchange raised thresholds ahead of schedule and failed to meet procedural and predictability requirements.

• Court suspended delistings of Jooyontech (KOSPI) and KM Pharmaceutical (KOSDAQ) pending final ruling
• Thresholds were raised early to 30 billion won for KOSPI and 20 billion won for KOSDAQ from July
• The 45 consecutive trading days recovery requirement was deemed excessively restrictive
• KRX halted trading in AFW and Sejin TS and suspended liquidation procedures