Listing Review Criteria (Quantitative Requirements)

KRX applies two listing criteria: the requirements for quantitative review and requirements for qualitative review. Quantitative listing criteria are the minimum qualification requirements necessary for the application of listing eligibility review.

< Quantitative Requirements >
Years of Operation At least 3 years Same as KOSPI
Corporate Size
  • No. of shaers to be listed : at least 1 mil. and
  • Shareholder's Equity : At least USD 30 mil.
  • Shareholder's Equity : at least USD 3 mil. or
  • Market Cap. : At least USD 9 mil.
Financial Performance
(Choose one of the options)
  • Option 1.
    1. Revenue : USD 100 mil. (recent year) and USD 70 mil.(3 yr average)
    2. Profit*< : USD 3 mil. (recent year) and
      USD 6 mil. (3 years sum) or
      • ROE : 5%(recent yr) and 10% (3 yrs sum) or
      • 3% ROE or USD 5 mil. profit(only for the company with USD 100 mil. of Shareholder's equity and positive operating cash flow)
  • Option 2.
    1. Mkt. Cap. USD 400 mil. & Revenue USD 200 mil.(recent year)
  • Opt 1. Income : ROE 10% (recent year)
  • Opt 2. Net profit : USD 2 mil. (recent year)
  • Opt 3. Market Cap. USD 30 mil. & Revenue USD 10 mil. (recent year)
  • Opt 4. Revenue USD 5 mil. & Revenue increase rate 20%
KOSDAQ applicant Shall not have its capital impaired for the recent year.
Profit : the smallest one among operating profit income before tax and net profit.
USD 1 = KRW 1,000 applied
Listing Requirements
Public float
  • General shareholders : at least 25%
    • At least 700 Korean shareholders in case of secondary listing
      (25% public float is not required.)
  • Minority shareholders: at least 25%
    • At least 500 Korean shareholders and 300,000 shares in case of secondary listing
      (25% public float is not required.)
  • Unqualified (recent yr) and unqualified / qualified (2 years before recent year)
  • Audited by Big 4 accounting firms
    (PWC, KPMG, Ernst & Young, Deloitte)
    • exempted in case of secondary listing
  • IFRS or U.S. GAAP for consolidated financial statements
  • Unqualified (recent year)
  • Audited by Big 4 accounting firms
    (PWC, KPMG, Ernst & Young, Deloitte)
    • exempted in case of secondary listing
  • IFRS or U.S. GAAP for consolidated financial statements
Listing Requirements
Qualitative review : Change of the largest shareholder is accepted if it does not affect management right Same as KOSPI
Share transfer Freely transferable Same as KOSPI
  • Companies on KRX designated market for 3 yrs
    • Home country governance rules recognized
    • Appointment of an outside director
  • Others: at least a quarter of board members
    • If asset is larger than USD 2 bil., at least 3 outside directors required & majority
    • If asset is below USD 2 bil. a quarter of board members should be outside directors.
Same as KOSPI
Full time
  • Companies listed on KRX designated market for over 3 years
    • An auditor or an audit committee
    • Composition of audit committee: at least 3 directors, majority outside directors, and accounting or financial experts with an outside director appointed as representative
  • Others: If aggregated asset value is at least USD 100 mil. one statutory auditor is required.
    • If asset is larger than USD 2 bil. audit committee is required (2/3 outside directors)
Same as KOSPI
Lock-up Period
  • Largest shareholder : 6 months after listing
    • exempted in case of secondary listing
  • Largest shareholder : 6 months after listing : exempted in secondary listing

Compelling equity story and the strong commitment to IPO journey would be the key successful factors for IPO and listing.

Business continuity
Operational & financial stability, Growth potential, Profitability
Operational transparency
Corporate governance, Internal control system, Accounting transparency
Investor protection
Transparent disclosure, minority shareholder protection, Lead manager
Listing Review Criteria (Qualitative Criteria)

Requirements for qualitative review may be summarized into three categories: going-concern status, management transparency and investor protection. Even though the foreign applicant fails to satisfy a specific requirement among others, KRX would still consider reviewing the results on the other qualitative requirement and withhold its final decision until it reaches a conclusion based on the overall aspects relating to all qualitative requirements.

< Qualitative Requirements >
Going-concern status
  • Stability : operational stability/financial stability/trading history/no change of the largest shareholder
  • Growth potential : industry growth cycle/revenue items and diversified clientele/sustainable R&D activities
  • Profitability : profit generating capability/effective asset usage/sustainable profit potential
Management transparency
  • Corporate governance : the largest shareholders/management in charge/non-executive board members/full-time statutory auditors and the audit committee
  • Internal control system : internal accounting management system and internal control system/ transactions with the affiliated parties
  • Accounting transparency : accounting management system/ auditor’s opinion of external auditors
Investor protection
  • Transparency of disclosure: designation of a disclosure personnel and separate disclosure team
  • Protection of minority shareholders: enforce ability of minority shareholder’s rights and execution of safeguard deposit
  • Liquidity and minority shareholders: Distribution of shares among minority shareholders and securing of liquidity resources
Content Manager
  • Listing Qualification Review 02-3774-8715