SK Securities to Halve Shares, Buy Back Stock to Escape Penny Stock Status

SK Securities (001510) is moving to cancel treasury shares and consolidate its stock as financial authorities crack down on "penny stocks" trading below 1,000 won per share. The company has long been considered one of the most prominent penny stocks on the KOSPI.

SK Securities announced Monday it will cancel 10 million common shares worth 18.2 billion won and consolidate its stock by merging shares with a 500 won par value into shares with a 1,000 won par value. The proposal will be finalized at the annual shareholders' meeting on March 24.

The consolidation will reduce SK Securities' total issued shares from 472,590,171 to 236,295,085—exactly half. Stock trading will be suspended from April 7 to 24 for the new share certificate listing. SK Securities emphasized that "this stock consolidation maintains corporate value and is not a 'capital reduction' that decreases paid-in capital." Shares closed at 1,485 won on Monday, down 18.41%.

SK Securities has been classified as one of the KOSPI's representative penny stocks. Its share price had surged recently after financial authorities announced "Reform Measures for Swift and Strict Delisting of Underperforming Companies," which tightened requirements for penny stock delisting. Under the new rules taking effect July 1, stocks will be designated for administrative review if they remain below 1,000 won for 30 consecutive days. Companies that fail to maintain prices at or above 1,000 won for 45 consecutive days during the subsequent 90-day period will face delisting.