Exchange Grants WFM a 6-Month Improvement Period... Avoids Delisting Crisis

[Asia Economy Reporter Kim Ji-hee] The Korea Exchange announced on the 21st that the KOSDAQ Market Committee has decided to grant Double U F M (WFM) a six-month improvement period following its review.

Previously, WFM was designated as a subject for a substantial review of listing eligibility. The substantial review of listing eligibility is a measure to examine whether a listed company should be delisted due to allegations of embezzlement and breach of trust, as well as being designated as a corporation with unfaithful disclosures. WFM became a target for delisting review after multiple instances of unfaithful disclosures.

Although the Corporate Evaluation Committee initially decided on delisting, the recent decision by the KOSDAQ Market Committee has temporarily averted the delisting crisis.

WFM was involved in allegations of corruption related to a private equity fund invested in by the family of former Minister of Justice Cho Kuk.

The improvement period granted by this decision lasts until July 21. WFM must submit a report on the implementation of its improvement plan within seven business days from the end of the improvement period. The Exchange will hold a KOSDAQ Market Committee meeting within 15 business days from the date of document submission to review and decide on the delisting status.