KRX tightens regulation on technology special listing, blocking the "crypto backdoor listing" path.

Shenchao TechFlow News. On July 02, according to Digital Asset, the Korea Exchange (KRX) announced revisions to its listing rules, stipulating that companies listed under technology-specific exemptions will be included in the scope of substantive delisting review if they change their primary business purpose within 5 years after listing. This move mainly targets certain biotechnology and other companies that, after logging in to KOSDAQ under technology-specific exemptions, have transformed their main business into digital asset investment or a virtual asset treasury (Crypto Treasury), among other activities.

KRX also clearly stated that such changes indicate that the original technical capability and growth potential are no longer valid, and that a delisting review must be initiated. In addition, during the listing exemption period, companies listed under exemptions are required to publicly disclose corporate value enhancement plans to safeguard investors’ right to be informed. This revision also covers expanding quality inspection standards for innovative companies, establishing a disclosure system for low PBR companies, and preparing relevant rules related to shares with multiple voting rights.