KOSDAQ Stock Mergers Surge 24-Fold in 5 Months as Companies Dodge Delisting Rules

According to the Korean securities industry, from February 12 to July 2, 2026, domestic listed companies conducted 243 stock mergers, a 24-fold increase compared to 4 cases in the same period of 2024 and 10 cases in 2025. KOSDAQ accounted for 192 of the total, significantly higher than the main KOSPI market's 51 cases.

The surge follows South Korea's strengthened delisting reform announced in February, which raised market capitalization thresholds to 30 billion won for KOSPI and 20 billion won for KOSDAQ, and added penny stocks trading below 1,000 won as a delisting criterion. Stock mergers allow companies to consolidate shares and raise share prices nominally without changing fundamental corporate value. Additionally, companies like Humax and NPD have pursued subsidiary mergers citing delisting risks as a key motivation, though analysts warn such maneuvers may prioritize listing survival over operational improvements.