Korea Exchange will strengthen post-listing management of KOSDAQ companies listed under the technology special listing programme and set a basis for operating a system to publish low price-to-book ratio (PBR) companies. It will also push ahead with system refinements for listings by issuers of multiple-voting shares.

Korea Exchange said it will revise listing rules and detailed regulations and implement them from July 2, as follow-up measures to the 'KOSDAQ Trust+Innovation Enhancement Plan' and the 'Capital Market Fundamental Improvement Plan'.

Under the revision, the system that defers application of delisting requirements for KOSDAQ special listing companies will change to a condition tied to disclosure of a corporate value enhancement plan. The measure applies to technology special listing companies and profit-unrealised special listing companies.

Special listing companies currently receive a deferral for a certain period for applying delisting requirements related to revenue and large losses, given they list based on future growth potential. Going forward, they will receive the deferral only if they disclose a corporate value enhancement plan during the deferral period.

The exchange plans to induce special listing companies to communicate future growth potential to investors. As of June 15, there were 389 value-up disclosures among all KOSDAQ companies, but only 10 of them were by special listing companies.

Oversight of changes to the business purpose of technology special listing companies will also be strengthened. If a company changes its main business purpose within 5 years after listing, it will be added to those subject to substantive review for delisting. Businesses similar to, or ancillary to, the existing main business are excluded.

Tailored qualitative review standards for listing innovative companies will also be expanded. The exchange will newly add tailored standards for advanced robotics, K-content and cybersecurity, following existing areas of biotech, artificial intelligence (AI), space and energy.

A basis in the listing rules will also be 마련ed for operating a system to publish a list of low-PBR companies. The exchange plans to draw up detailed criteria in separate guidelines and announce them within July.

Under the capital market fundamental improvement plan, the low-PBR company list will be published on a standing basis on the KRX Value-up website, and a 'low PBR' tag will be displayed in the stock name. Companies that disclose a corporate value enhancement plan may be exempted from publication and the tag display for a certain period.

Rules will also be refined for listings by issuers of multiple-voting shares. Under the Special Act on the Promotion of Venture Businesses, an unlisted venture company that meets certain requirements may issue multiple-voting shares with more than 1 and up to 10 votes per share.

The exchange decided to allow listings of common shares of corporations that issue multiple-voting shares. The multiple-voting shares themselves will not be listed, considering their legal nature such as conversion into common shares upon transfer.

It will also newly introduce the concept of a 'largest voting-rights holder' based on the number of voting rights, in addition to the existing concept of a controlling shareholder based on the number of shares owned. When applying requirements such as mandatory lock-ups for controlling shareholders, if the controlling shareholder and the largest voting-rights holder differ, the system will be refined to include the largest voting-rights holder in the controlling shareholder category.

A basis will also be 마련ed in preliminary listing reviews to examine matters including the appropriateness of issuing multiple-voting shares and whether checks are in place to prevent abuse of voting rights.

Meanwhile, rules related to the delisting reform plan revised in May took effect on July 1. Under the changes, the market capitalisation requirement applies at 30 billion won for KOSPI and 20 billion won for KOSDAQ, and from Jan. 1, 2027 it will apply at 50 billion won for KOSPI and 30 billion won for KOSDAQ.

A new penny-stock requirement was also introduced, applied as a criterion for designation as an issue under administration and for formal delisting requirements when a closing price stays below 1,000 won for a certain period. Full capital impairment in a semiannual review report is added as a reason for substantive review for delisting.