KOSDAQ Penny Stocks Nearly Halved, Mostly via Reverse Splits | October 13 2026 | Securities Daily

Episode Description:
Korea’s tougher KOSDAQ delisting rules are cutting the number of penny stocks, mostly through reverse stock splits rather than better fundamentals.
In the 100 days since stricter delisting rules took effect on July 1, the number of KOSDAQ stocks trading below 1,000 won (about $0.75) fell from 150 to 82 as of October 12, down 45.3%, while stocks below the 20 billion won (about $15 million) market-cap threshold fell 18.5% to 185. Of the 150 stocks below 1,000 won on July 1, 86 crossed that level, and 63 of them, or 73.3%, did so through reverse stock splits, with only 23 doing so without one. Reverse splits raise the per-share price by reducing the share count but do not increase corporate value, prompting industry doubts about the rule’s effectiveness. Stocks below 1,000 won for 30 consecutive trading days are designated administrative issues and face delisting if they fail to close above 1,000 won for 45 straight trading days within 90 days.

Sources:

Penny Stocks Halved, 73% of Escapees Used Reverse Splits — Seoul Economic Daily, October 13, 2026

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Tags:
#KOSDAQ #PennyStocks #ReverseSplit #Delisting #KoreaExchange #KoreanStocks #KOSPI #AIPRISM #SeoulEconomicDaily #WANIFRA