Key details

Criteria for qualitative review are composed of the matters related to sustainability of corporate management, corporate governance structure, corporate disclosure, and protection of interest of shareholders. KRX establishes and operates the guideline of listing review in order to ensure objectivity of listing review.

Corporate sustainability
Business stability
  1. Independency of management is recognized; major business does not depend on management policy or performance of other corporations, etc.
  2. Sustainability of major business is not interrupted due to cancellation of license or violation of the relevant laws and regulations.
  3. Stable business foundation is maintained in terms of market share, etc.
Management foundation and profit structure
  1. Prospects for growth of the industry where the major business belongs are recognized in terms of the existence of alternative industry, competitive status of the market, and governmental policy.
  2. The current level of profits is maintained after listing, and prospects for early recovery are recognized in the case where the current profits decline.
  3. Financial stability is recognized in terms of current ratio, quick asset ratio, debt ratio, total borrowings to total assets, or financial expenses to sales.
Characteristics of the major business
  1. The fact that the major business finances through the stock market is not recognized to be inappropriate from the national economical perspective.
  2. When it comes to profit distribution, the characteristics as a joint stock corporation is recognized pursuant to the Commercial Act.
Transparency of corporate management
Composition of the management
  1. The fact that the affiliated person of the largest shareholder works as an officer of the corporation shall not interrupt the faithful execution of operation and fair surveillance.
  2. Independency of an auditor shall be recognized.
Corporate governance structure
  1. The regulations related to business management such as articles of incorporation is deemed to be modified
  2. Internal control system such as internal auditor is deemed to be confirmed.
  3. Independency from the enterprise group or holding company is recognized.
Matters related to corporate disclosure and protection of interests of shareholders
Transparency of accounting process
  1. Accounting department and systems appropriate for the size and characteristics of the corporation shall be prepared.
  2. Change in accounting standards or change of the external auditor is appropriate.
Transactional relations with the largest shareholder, etc.
  1. There shall be no concern to harm shareholder’s interests owing to issuance of convertible bonds or bonds with warrants or provision of stock options by inappropriate prices.
  2. Unfair profits shall not be provided to the largest shareholder and the related corporation through the acts such as internal transaction, payment guarantee, etc.
  3. In the case of KOSDAQ market, whether the change in shareholdings of the largest shareholder, etc. is appropriate or not shall be checked.
Establishment of disclosure system
Internal regulations and administration organization to ensure timely disclosure of the important matters relating to financial status, business performance, and the affiliated person shall be prepared.