[Asia Economy Reporter Oh Ju-yeon] Shareholders of SillaJen, a company listed on KOSDAQ, have called for the resumption of stock trading. SillaJen's stock trading is currently suspended due to embezzlement and breach of trust issues involving former and current CEOs.
On the 10th, the SillaJen shareholders' association stated in a press release, "The Korea Exchange's decision to suspend SillaJen's trading and conduct a delisting suitability review due to allegations of breach of trust by former and current executives before the listing is an unfair act that infringes on the property rights of 170,000 small shareholders."
They added, "Considering that an external auditor has issued an 'unqualified' audit opinion and there is no risk of accounting fraud, there is sufficient room for SillaJen to be excluded from delisting. The Exchange should immediately resume trading of SillaJen's shares and protect the shareholders."
SillaJen was designated for a delisting suitability review on the 19th of last month due to embezzlement and breach of trust allegations against former CEO Moon Eun-sang and others. The delisting suitability review is a process to determine whether there are issues with maintaining the company's listing. According to KOSDAQ market listing regulations, after confirming embezzlement or breach of trust allegations above a certain scale, the Exchange may review and decide on delisting by comprehensively considering the company's continuity, management transparency, and market soundness.
Currently, SillaJen's stock trading has been suspended since early May, when the delisting suitability review reason arose.
As of the end of last year, the number of small shareholders of SillaJen was 168,778, holding 87.68% of the shares. At the current stock price (12,100 KRW), the stock value amounts to 750 billion KRW.
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