Ostem Must Submit Management Improvement Plan by the 14th
[Asia Economy Reporter Minji Lee] Ostem Implant, which had its trading suspended due to an unprecedented embezzlement case amounting to 221.5 billion KRW, has been designated as a delisting candidate. As the trading suspension is prolonged, the losses are expected to fall entirely on the approximately 20,000 small shareholders.
On the 17th, the Korea Exchange classified Ostem Implant as a subject for a substantial review of listing eligibility. The Korea Exchange explained, "After reviewing the possibility of delisting under Article 56, Paragraph 1, Subparagraph 3 of the KOSDAQ Market Listing Regulations, we decided to designate it as a subject for a substantial review of listing eligibility."
Ostem Implant, which is subject to the substantial review, must submit a management improvement plan by the 14th of next month (within 15 days). Upon submission, the Exchange will hold a Corporate Evaluation Committee (CEC) meeting within 20 days from the submission date to decide whether to maintain the listing, delist, or grant an improvement period. If no submission is made, the CEC results will be notified within 20 days from the notification date, by the 21st of next month.
Due to the classification as a subject for substantial review, it is expected to take more time before trading resumes. Accordingly, the frustration of small shareholders, who have been demanding the resumption of trading while considering the company's growth potential and market impact, is likely to deepen. Current estimates indicate that the losses suffered by Ostem Implant's small shareholders exceed 1 trillion KRW. Nearly 2,000 small shareholders are currently preparing compensation lawsuits against Ostem Implant.
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