Image generated by ChatGPT More than 200 public companies could face delisting under a new Korea Exchange (KRX) rule targeting penny stocks set to take effect July 1, putting investors and affected firms on edge.
Penny stocks refer to shares trading below 1,000 won ($0.65).
According to KRX data, 219 companies were trading below that threshold as of Friday, accounting for 7.6 percent of all listed firms.
The total includes 148 companies listed on the secondary Kosdaq market, 42 on the benchmark KOSPI and 29 on the Korea New Exchange (KONEX), a market for small and medium-sized enterprises and startups.
These companies account for more than 8 trillion won in combined market capitalization, raising concerns that a sizable amount of value could disappear from the market if those firms eventually fail to meet the new requirements.
