Korea Exchange to shelve plan to delist some small-cap stocks after court rulings

The Korea Exchange (KRX) said Wednesday it decided to shelve a plan to delist some small-cap stocks after a court upheld injunctions in favor of two firms that faced delisting over tightened rules on market capitalization.

The decision came after the Seoul Southern District Court accepted injunctions separately filed by two listed firms — Jooyon and KM Pharmaceutical — last Friday.

The two firms, along with six other small-cap stocks, had faced delisting because their market values were below the tightened rules.

In a statement the KRX said the delisting procedures for the firms have been put off since last Friday.

However, the KRX said it will continue suspension of transactions for stocks that have been flagged under the tightened rules.