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To: Gersh Avery who wrote (208454)	12/8/2002 11:41:49 PM
From: who cares?	Respond to of 436258

I always find it funny how the rest of the worlds markets are supposed scammer havens yet they have tougher rules than our supposed world best system. Imagine, they'd probably have a tough time finding 100 stocks to keep on the Nasdaq if they following the following rules. South Korea to Toughen Kosdaq Listing, Exiting Rules (Update1) Seoul, Dec. 9 (Bloomberg) -- South Korea plans to tighten listing rules for its Kosdaq stock index, making it harder for ailing companies to continue trading in a technology-focused market whose benchmark has slumped 80 percent in two years. Companies that post an operating loss, a loss excluding one- time items, or debt of more than three times the average for their industry will be placed under supervision and face delisting if they remain unprofitable or debt-ridden for two years, the Financial Supervisory Commission said in a statement. Companies whose outstanding shares fall below a market value of 1 billion won ($825,000) for a certain period will also be placed under supervision. ``We are trying to raise the level of trust in the over-the- counter market,'' said Lee Doo Hyung, director-general of the commission's supervisory policy bureau. ``Kosdaq companies have the misfortune of being regarded as very risky investments.'' Investors have been shying away from the Kosdaq market on concerns about earnings at technology companies, which make up more than 70 percent of the index. The Kosdaq has shed more than a quarter of its value this year, in contrast with a 3.5 percent gain by South Korea's main index, the Kospi. Trade Decline The Kosdaq peaked at 283.44 in March 2000 during the Internet and technology boom. It stood at 53.24 as of 1:06 p.m. today. The market's total value was 43.3 trillion won ($36 billion) at the end of last month, during which trading amounted to 18 trillion won. Among other restrictions the Financial Supervisory Commission announced, companies whose shares trade at less than 30 percent of their face value will be suspended from trading for a specific period, effective from July. A current rule operates when a share price falls to 20 percent of its face value. A company will also be placed under supervision if its three- month average of shares traded is less than 2 percent of its total shares. Current rules employ a six-month average. If the stock's low volume persists for three months, it will be delisted. The government plans to set up a committee to evaluate companies seeking to list shares on the Kosdaq, the commission said. Applicants will be assessed on their technology, marketability, profitability, management and financial status. The government also toughened delisting regulations for companies traded on the Korea Stock Exchange. -----------------------------====================------------------------------ Copyright (c) 2002, Bloomberg, L. P. Page 2 of 2 If a company's losses have completely eroded its capital, it can immediately be delisted. This rule will apply from the 2003 fiscal year, meaning any action will probably not occur until after a company's books are closed. If losses amount to 50 percent of a company's capital, it will be placed under supervision and will be delisted if it shows no change after two straight years. --Heejin Koo at hjkoo@bloomberg.net in Seoul (822) 3702-1609 Editors: Saunders, Waller.