Smaller companies to be listed on benchmark Kospi

Smaller companies with a market capitalization of 200 billion won ($175.8 million) and annual sales of 100 billion won can be listed on the benchmark Kospi, as long as they have a capital of 30 billion won, the Korea Exchange said on Thursday. The aim is to allow more growth-potential based companies into the market. The new rule came in effect Thursday. The Korea Exchange also opened the gate for companies with a market capitalization of 200 billion won with an operating profit of 5 billion won, as long as they meet the 30 billion capital rule. So far, only companies that had a market capitalization of 400 billion won and an annual sale of 200 billion won were eligible for the Kospi. Companies with more than 400 billion won capital and 700 billion won annual sales get a halved corporate audit when they separate a business unit and list the separated unit in the Kospi.