Definition of Substitute Securities
Substitute securities refer to the marketable securities which have been designated to be used as good faith deposit, etc. instead of cash in order to boost the use of marketable securities.
Issues Excluded from Substitute Securities Designation
  • Issues subject to listing maintenance review, administrative issues, and issues scheduled to be delisted
  • Issues of which trading has been suspended due to the application for delisting
  • Issues designated as Investment Alert Issues and Investment Risk Issues.
Calculation of Substitute Price of Listed Issues and Time Period of Substitute Price Application
  • It is calculated for each day (excluding the days when the market is closed) and then applied to the next trading day.
  • However, the substitute price is applied from the trading commencement date in the case of new listing, re-listing, initial listing of preferred stocks (including the initial listing of preferred stocks of which types are different from those of preferred stocks already listed) and listing of foreign DRs with different rights.
  • In the case of new share listing, the substitute price is calculated and applied on the trading commencement date.
Calculation of Substitute Price
  • Substitute price: Base market price × Appraisal ratio (Amount less than KRW 10 is rounded off.)
  • Base market price
    • Closing price of the day which is right before the application date. However, the base price will be applied instead when it is adjusted on the application date for reasons such as ex-dividend and ex-rights.
    • Evaluation price in the case of new listing, re-listing, initial listing of preferred stocks (including the initial listing of preferred stocks of which types are different from those of preferred stocks already listed) and listing of foreign DRs with different right
    • Base price of the trading commencement date in the case of new shares
  • Appraisal ratios are calculated at the end of each quarter and the average daily trading value is calculated for the one year period from the end of each quarter.
    • Top 50% in terms of average daily trading value and KOSDAQ 150 Index constituents : 80%
    • Bottom 5% in terms of average daily trading value: 60%
    • Other issues: 70%

    However, the application of substitute price may be stopped temporarily in the case of issues of which trading has been suspended for a long time or issues which deemed necessary for the purpose of market management.

Content Manager
  • Listing Qualification Review 02-3774-9734
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