SEOUL, Oct. 22 (Yonhap) -- Five listed firms face delisting as their stock prices have failed to meet tougher listing requirements, according to data from the Korea Exchange (KRX) on Thursday.
The tougher rules were put in place in July to remove penny stocks as financial authorities moved to delist distressed companies, long seen as a drag on the local stock market.
Under the rules, a listed firm will be forced onto a roster of delisting if the firm's stock price falls below 1,000 won (US$0.75) per share for a 45th consecutive trading session after it was warned by authorities for poor performance.
The five listed firms -- TKG Aikang, Nuintek, Hyungji Global, Barunson Entertainment & Arts and i-Scream Edu -- were warned over penny stock status on Aug. 13.
When the KRX issues a public notice on the delisting of the five firms, it will be the first case for penny stocks to be removed from the market under the system.
In a bid to reinvigorate the KOSDAQ market, the KRX has also planned to implement a two-tier segmentation system in the secondary stock market starting next year.
According to the proposed plan, the listed firms on the KOSDAQ market will be divided into two segments -- the premium sector for heavyweights and another sector for underperforming firms.
The building of the Korea Exchange, South Korea's main bourse operator (Yonhap)
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