149 KOSDAQ Companies Face Delisting Risk as Stock Price Falls Below 1,000 Won

According to Maeil Business Newspaper, as of July 21, a total of 149 KOSDAQ-listed companies had stock prices below 1,000 Korean won amid stricter delisting standards that took effect this month. The new rules stipulate that companies with a market capitalization below 20 billion won or stock prices under 1,000 won for 30 consecutive trading days will be designated as management stocks; those failing to recover within specified periods face automatic delisting without further review.

With 221 companies also holding market capitalizations below 20 billion won, many firms are using stock splits—consolidating multiple shares into one to raise per-share price—as a defensive measure. KOSDAQ saw 192 stock consolidation cases from February through mid-year, approximately four times the number on the main market (KOSPI). Analysts note, however, that stock splits merely adjust nominal prices without addressing underlying business fundamentals, leaving companies vulnerable to renewed declines.