Exchange Grants ShillaJen a 6-Month Improvement Period... Delisting Postponed

[Asia Economy Reporter Kwon Jaehee] SillaJen, whose trading was suspended due to embezzlement and breach of trust by management, has been granted an improvement period.

On the 18th, the Korea Exchange announced that it decided to grant SillaJen a six-month improvement period following the review and resolution of the KOSDAQ Market Committee.

Accordingly, after the improvement period ends, the delisting decision will be made again through the review and resolution of the Market Committee.

The Exchange stated, "Within 15 days from the end of the improvement period on August 18, SillaJen must submit a report on the implementation of the improvement plan and an expert verification report on the results of the improvement plan."

Afterward, within 20 days from the date of SillaJen's document submission, the Exchange will hold another KOSDAQ Market Committee meeting to review and resolve the delisting decision.

During this period, the suspension of trading of SillaJen's shares will be maintained.

SillaJen's stock trading was suspended in May 2020 due to the occurrence of a reason for a substantial review of listing eligibility caused by embezzlement and breach of trust by former and current executives, including former CEO Moon Eun-sang.

In November of the same year, the Exchange's Corporate Evaluation Committee (the first instance of the substantial review of listing eligibility) granted a one-year improvement period, and after the improvement period ended, the Corporate Evaluation Committee decided on delisting at the meeting held on the 18th of last month.

Meanwhile, according to SillaJen's quarterly report, as of the end of 2020, the number of minority shareholders was 174,186. Their shareholding ratio is 92.60%.