Iljeong Industrial will begin trading on the K-OTC market's delisted designated companies section starting May 29, the Korea Financial Investment Association announced on the 27th. The company was delisted from KOSPI after failing to meet the 20 billion won market capitalization requirement, undergoing liquidation trading from May 19 to May 29. KOFIA designated it for up to six months of K-OTC trading support after determining it met minimum investor protection requirements.
K-OTC Sets Trading Parameters for Iljeong Industrial Stocks
The reference price for the first trading day will be determined as the lower value between the closing price on the final trading day before delisting and the arithmetic average of closing prices from the most recent three trading days before delisting. The price limit is set at ±30% of the reference price.
The K-OTC market operates on a bilateral matching system where trades execute only when bid and ask prices match. Trading hours run from 9:00 AM to 3:30 PM.
Iljeong Industrial Delisted from KOSPI After Market Cap Failure
Iljeong Industrial was a KOSPI-listed company but failed to meet the 20 billion won market capitalization requirement. The company underwent liquidation trading from May 19 to May 29 before delisting.
KOFIA Confirms Investor Protection Requirements Met
KOFIA determined that Iljeong Industrial met minimum requirements for investor protection and selected it as a new designation target for the K-OTC delisted designated companies section.
KOFIA Plans Monthly Reviews of Delisted Stocks
KOFIA will review stocks delisted from KOSPI and KOSDAQ markets each month. Unless special circumstances exist, the association will confirm whether designation requirements are met and newly designate companies to the delisted designated companies section the following month.
K-OTC Market Expands to 123 Tradable Companies
With this designation, the total number of companies tradable on the K-OTC market increased to 123.
Newly designated stocks can be traded through home trading systems (HTS) and mobile trading systems (MTS) of securities firms providing K-OTC brokerage services, identical to registered and designated company section stocks.
Designation Period and Potential Transition Path
Designation for delisted designated companies section stocks is removed on the first business day after six months from the initial trading date. If deemed necessary for investor protection due to dissolution or other reasons, designation can be removed during the designation period.
KOFIA will support trading by transferring companies from the delisted designated companies section to the K-OTC registered and designated companies section if continued trading is deemed appropriate after designation removal.
FAQ
What trading restrictions apply to Iljeong Industrial stocks on K-OTC starting May 29?
The reference price is the lower value between the final KOSPI closing price and the three-day average closing price before delisting. The price limit is ±30% of the reference price. Trading occurs only when bid and ask prices match, from 9:00 AM to 3:30 PM.
Why did KOFIA designate Iljeong Industrial for K-OTC trading after KOSPI delisting?
KOFIA determined that Iljeong Industrial met minimum requirements for investor protection. The company failed the 20 billion won KOSPI market capitalization requirement and completed liquidation trading from May 19 to May 29 before delisting.
