Exchange Simplifies Technology Special Approval Process for Unicorn Company Listings

[Asia Economy Reporter Song Hwajeong] The special technology review process for high-quality unicorn companies with large market capitalization will be simplified.

The Korea Exchange announced on the 22nd that starting from the 26th, it will implement a plan to relax the special technology recognition procedure for companies with excellent market capitalization compared to the existing process.

Previously, to receive special technology recognition, companies had to undergo a technology evaluation from multiple external professional evaluation agencies before requesting a preliminary listing review at the exchange. The evaluation results had to be rated A or BBB or higher.

However, under the improved plan, high-quality technology companies with excellent market capitalization will have a simplified technology evaluation procedure for special technology recognition. The exchange explained that companies with excellent market evaluation are considered to have their future growth potential indirectly verified to some extent through market capitalization. First, companies with a market capitalization of 500 billion KRW or more will have the evaluation simplified from multiple agencies to a single agency. The evaluation result must be A or higher. Companies with a market capitalization of 1 trillion KRW or more will skip the preliminary evaluation procedure and proceed with the review through an external expert meeting after requesting the preliminary listing review. The external expert meeting will be composed of experts related to the relevant technology from academia and research institutions.

An exchange official stated, "This will help resolve some procedural inconveniences related to the domestic stock market listing of high-quality unicorn technology companies such as platform bio," and added, "It will also address procedural imbalances with the KOSPI market, where listing is possible without prior external technology evaluation procedures."

Separately from this procedural improvement, the exchange plans to conduct a comprehensive analysis of the post-listing soundness trends of companies listed through the special technology review and, based on the results, prepare measures to enhance soundness related to special technology listings in consultation with the Financial Services Commission.