The KOSDAQ market in South Korea is facing an increased threat of delisting for poor-performing companies, as the Financial Services Commission (FSC) announced that about 150 firms might be at risk this year, up from the previous estimate of about 50. This surge is attributed to the FSC's plan to implement stricter delisting criteria aimed at accelerating the removal of failing businesses from the exchange. Financial Commission Chairman Lee Ok-won highlighted this initiative during a regional meeting in Gwangju and Jeonnam, emphasizing the need for a significant overhaul to support productive finance and innovation.

As part of these changes, the FSC is considering raising the market capitalization threshold for maintaining a listing and introducing new regulatory conditions specifically targeting 'penny stocks'—companies with stock prices below 1,000 won. These measures are expected to lead to a revised approximation of potential delistings, thus ensuring that underperforming companies are quickly removed from the market, allowing more stability and growth potential for healthier enterprises.

In addition to tightening delisting regulations, the FSC is also promoting investment in high-tech sectors through its National Growth Fund. The commission plans to shield private financial companies from penalties in cases of unintentional losses when they engage in funding for this initiative. They are also working on adjusting the risk-weight criteria for these investments to encourage banks to become more actively involved in funding policy-oriented projects. This strategy aims to reduce the financial burden on private firms and stimulate greater investment participation in the fast-evolving high-tech arena.