On February 12, 2026, the Financial Services Commission (the “FSC”) and the Korea Exchange (the “KRX”) jointly announced a sweeping overhaul of the KRX delisting framework under the “Delisting Reform Plan for the Swift and Strict Exit of Underperforming Companies” (the “Reform Plan”) as a response to persistent market underperformance.  The delisting criteria under the Reform Plan are comprised of 4 key elements (of which are discussed in more detail below together with procedural streamlining provisions): (i) accelerated implementation of minimum market capitalization thresholds, (ii) introduction of a new standalone delisting criterion targeting penny stocks (referring to shares trading below KRW 1,000; Dongjeonju, in Korean), (iii) extension of the complete capital impairment trigger to cover semi-annual assessments and (iv) reduction of the accumulated disclosure violation threshold from 15 to 10 penalty points, with a single material and intentional violation independently triggering substantive delisting review.

The foregoing delisting criteria are applicable equally to both the KOSPI and KOSDAQ markets, through the amendments to the KOSPI Market Listing Rules and KOSDAQ Market Listing Rules effective July 1, 2026.