South Korea’s Financial Services Commission (FSC) and the Korea Exchange (KRX) on Thursday unveiled measures to accelerate the removal of insolvent firms from local bourses, launching an intensive management period through June 2027 and tightening key delisting requirements for both the KOSDAQ and KOSPI markets.

The reforms strengthen market capitalization thresholds, introduce a new delisting criterion for stocks trading below $0.70 (1,000 won), expand full capital impairment rules to include interim periods and lower the cumulative penalty threshold for disclosure violations.

The maximum improvement period for KOSDAQ firms under substantive review will be shortened to one year from one-and-a-half years.