South Korea will tighten delisting rules to improve stock market quality, raising the market capitalisation threshold for Kospi-listed firms from KRW5bn (USD3.45m) to KRW20bn in 2026 and KRW50bn won in 2028, the Financial Services Commission (FSC) said. Improvement periods for firms under delisting warnings will be halved to two years. Firms with a market cap below KRW100bn will also face higher revenue requirements, gradually increasing to KRW30bn by 2029. IPO rules will tighten, requiring 40% of shares to be allocated to institutional investors with lock-up pledges starting in 2026. Regulators aim to remove underperforming firms, addressing inefficiencies and boosting market trust, with 7%-8% of Kospi and Kosdaq firms failing to meet new standards.