The KOSDAQ market recorded trading volume of 4.7937 trillion won on the 20th, marking the first time this year the figure dropped into the 4 trillion won range. The last time KOSDAQ trading volume fell below 5 trillion won was August 28 last year at 4.6842 trillion won. The decline occurred as investor capital concentrated in large-cap KOSPI stocks and semiconductor sectors amid a broader domestic market correction. The KOSDAQ index plunged 5.33% to close at 749.64, approaching the 740 level. The prolonged KOSDAQ downturn has intensified concerns about strengthened delisting criteria, with approximately 350 listed companies now facing potential delisting risks due to market capitalization shortfalls and other factors.
KOSDAQ Companies Face Delisting Under New Market Cap and Price Thresholds
According to Korea Exchange data as of the 20th closing price, 221 KOSDAQ-listed companies have market capitalizations below 200 billion won. An additional 149 companies trade as "penny stocks" with share prices below 1,000 won.
Delisting requirements strengthened this month place companies with market capitalizations below 200 billion won or share prices below 1,000 won in the delisting candidate pool. Companies maintaining this status for 30 consecutive trading days receive management stock designation. Listed companies designated as management stocks due to insufficient market capitalization face automatic delisting if they fail to exceed 200 billion won for 45 consecutive trading days out of 90 trading days, with no separate review process.
The strengthened criteria have placed financially sound companies at delisting risk. JMI, a household goods and automotive interior materials manufacturer, has maintained operating profit for three years but has traded as a penny stock since May. Wing Eat Food, a Chinese processed meat producer, posted a profit in the first quarter this year but has remained below 200 billion won market capitalization for 17 consecutive trading days.
Government Implements KOSDAQ Activation Policies Including Pension Fund Allocation
The market is placing expectations on government-led KOSDAQ activation policies. The government plans to finalize detailed measures for a "KOSDAQ promotion and relegation system" by year-end, which will support quality companies and expedite the exit of underperforming firms.
The government has implemented a 5% KOSDAQ index weighting in pension fund benchmarks and established a dedicated KOSDAQ fund within the National Growth Fund, which can reach up to 200 trillion won in scale. These measures aim to expand institutional investor participation in KOSDAQ stocks and alleviate chronic supply-demand imbalances.
Alteogen, a leading KOSDAQ stock, recently postponed its planned transfer to KOSPI listing. A financial investment industry official stated that strengthened regulations on single-stock leveraged exchange-traded funds (ETFs) could partially ease supply-demand imbalances previously concentrated in specific stocks such as semiconductors.
FAQ
What caused KOSDAQ stocks trading volume to fall to the 4 trillion won range?
Investor capital concentrated in large-cap KOSPI stocks and semiconductor sectors amid a broader domestic market correction, causing KOSDAQ trading volume to fall to 4.7937 trillion won on the 20th — the first time this year the figure dropped into the 4 trillion won range.
How many KOSDAQ companies face delisting under the new thresholds?
As of the 20th closing price, 221 KOSDAQ-listed companies have market capitalizations below 200 billion won, and 149 companies trade below 1,000 won per share. Companies maintaining either status for 30 consecutive trading days receive management stock designation and face automatic delisting if they fail to meet the 200 billion won threshold for 45 out of 90 trading days.
What KOSDAQ activation policies has the government implemented?
The government implemented a 5% KOSDAQ index weighting in pension fund benchmarks and established a dedicated KOSDAQ fund within the National Growth Fund. The government plans to finalize detailed measures for a KOSDAQ promotion and relegation system by year-end.
