Exchange Unable to Decide on ShillaJen Delisting... Corporate Review Committee Decides to Resume (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The Korea Exchange has decided not to make a final decision on the delisting of SillaJen and has opted for a reconsideration.

The Korea Exchange's Corporate Evaluation Committee announced on the 6th that after reviewing the possibility of delisting SillaJen, it decided to continue the deliberation. The schedule for the next steps has not been set.

Earlier in June, the Exchange designated SillaJen for a substantial review of listing eligibility due to allegations of embezzlement and breach of trust involving former CEO Moon Eunsang and other executives. The amount embezzled by the former management reached 194.7 billion KRW, approximately 344% of the company's equity capital.

Trading of SillaJen shares has been suspended since early May when the substantial review cause arose. SillaJen announced at the end of last month that it plans to hold a shareholders' meeting on the 7th of next month to address agenda items including partial amendments to the articles of incorporation and the appointment of directors.

SillaJen entered the KOSDAQ in 2016 through a technology special listing, and expectations for its developing anti-cancer virus candidate drug 'Pexaver' raised its market capitalization ranking to as high as second place on the KOSDAQ.

After the Exchange designated SillaJen for substantial review last month, minority shareholders have held rallies daily urging the resumption of trading. As of the end of last year, there were 168,778 minority shareholders of SillaJen, holding 87.68% of the shares.

The minority shareholders claim, "The Exchange's suspension of trading and decision to conduct a substantial review of listing eligibility based on allegations of breach of trust by former and current management before the listing is an unfair act infringing on the property rights of 170,000 minority shareholders."