Korea Exchange delays small-cap delistings after court backs two companies

The Korea Exchange (KRX) said Wednesday that it decided to shelve a plan to delist some small-cap stocks after a court upheld injunctions in favor of two firms that faced delisting under tightened market capitalization rules.

The decision came after the Seoul Southern District Court accepted injunctions separately filed by two listed firms — Jooyon and KM Pharmaceutical — last Friday.

The two firms, along with six other small-cap stocks, had faced delisting because their market values were below the tightened rules.

In a statement, the KRX said the delisting procedures for the firms have been put off since last Friday.

However, the KRX said it will continue suspending transactions in stocks that have been flagged under the tightened rules.

Yonhap