South Korea: De-listing Opportunities
The Korea Exchange enforces strict listing requirements for all member companies, namely:
- Shareholders’ equity at least KRW 10 billion; or market capitalization at least KRW 20 billion
- Sales at least KRW 30 billion (USD 30 million) for the latest fiscal year
- Average annual sales for last three years at least KRW 20 billion (USD 20 million)
- ROE at least 5% for latest fiscal year; 10% for the last three fiscal years; or net income at least KRW 2.5 billion (USD 2.5 million) for latest fiscal year; KRW 5 billion (USD 5 million) for the last three fiscal years
Corporate earnings deficits in 2008 have set forth a round of de-listings accompanied by forced selling. It seems at least plausible that some of the effected stocks have been trading at levels which do not correspond with their intrinsic values. Companies de-listed during 2008 are presented here:
|
Corporation |
De-listing Date |
Reason |
| Woo Young |
Mar. 13 |
Bankruptcy |
| ModelLine |
Apr. 12 |
Impairment of capital |
| Securoty KOR |
Apr. 12 |
Impairment of capital |
| NTorino |
Apr. 12 |
Impairment of capital |
| Future Vision |
Apr. 12 |
Impairment of capital |
| UCIcols |
Apr. 17 |
Impairment of capital |
| CHUNG LAM |
Apr. 23 |
Failure to submit ann. report |
| Planet 82 |
Apr. 23 |
Net loss for 3 years consec |
| Hantel |
Apr. 23 |
Impairment of capital |
| Dongjak Cable & Comm |
Jul. 12 |
Fall of trading volume |
| BestFlow |
Aug. 25 |
Impairment of capital |
| Seraon |
Sep. 9 |
Impairment of capital |
| Ibxene |
Dec. 20 |
Bankruptcy |
| KOREA CEMENT |
Aug. 20 |
Fall under dissolution criteria |
Source: KRX
After de-listing from the Korea Exchange, stocks trade in the private over-the-counter market: http://www.pstock.co.kr/
http://www.jstock.com/
Interesting idea. However, I am finding that those websites are only in Korean. Is there an English website for Korean OTC stocks? Thanks for the interesting website.
For English reports most people use KISLine, which covers all Korean listed stocks.