Seoul Court Blocks KM Pharmaceutical Delisting Over Unlawful Market-Cap Rules
A Seoul court halted the delisting of KM Pharmaceutical, declaring the Korea Exchange’s recent market-capitalization thresholds illegal.
KM Pharmaceutical received a court-ordered pause on its delisting after the Seoul Southern District Court ruled that the Korea Exchange’s new market-capitalization standards violated legal procedures. The court barred the exchange from proceeding with liquidation trading and criticized the premature increase of the threshold from 4 billion won to 20 billion won, which was moved up by six months without sufficient evidence.
It also questioned the tightening of the recovery requirement from 30 consecutive days within 90 trading days to 45 consecutive days. The company had been placed on a management-watch list after falling below the required cap for 30 straight days. The decision impacts Sejin TS, another Kosdaq-listed firm facing liquidation, as the exchange reviews whether the same rules apply. The exchange will later decide if trading can resume for Sejin TS.
