[Asia Economy Reporter Hwang Yoon-joo] It has been revealed that 28 companies received adverse audit opinions in their 2021 fiscal year audit reports, putting them at risk of delisting. Considering companies that delayed submitting audit reports due to COVID-19 and other reasons, this number is expected to increase.
According to the Korea Exchange on the 27th, as of the 25th, a total of 28 companies received adverse opinions (qualified, adverse, or disclaimer of opinion) from auditors in their audit reports: 2 companies in the KOSPI market and 26 companies in the KOSDAQ market.
Among them, KOSPI-listed company Seondo Jeongi and 26 KOSDAQ-listed companies faced delisting reasons and are at risk of delisting.
Daehyun Accounting Corporation, which prepared the audit report for Seondo Jeongi’s financial statements, expressed a 'disclaimer of opinion' on the company due to limitations in audit scope and deficiencies in the company’s internal controls.
In the KOSPI market, 'adverse opinion' and 'disclaimer of opinion' are grounds for delisting, while 'qualified opinion due to audit scope limitation' is a reason for designation as a management item.
KOSPI-listed company Iljeong Silup was designated as a management item after receiving a qualified opinion. If it receives a qualified opinion again in the next audit report submission, delisting procedures will proceed.
Stricter standards apply to KOSDAQ-listed companies, where receiving adverse, disclaimer, or qualified opinions due to scope limitation all result in delisting.
Fourteen KOSDAQ-listed companies, including Intromedic, Izmedia, Yeon-i B&T, Syswork, S-Mac, and Jinain Pharmaceutical, received adverse opinions for the first time last year. These companies can usually receive a one-year improvement period if they submit an objection.
Twelve companies, including Good People, U-Tech, and Terasem, which received adverse opinions for two consecutive years, will have their delisting status decided after the improvement period ends and a review by the Market Committee.
Considering that 50 companies (13 in KOSPI and 37 in KOSDAQ) have yet to submit audit reports, the number of companies facing delisting due to adverse audit opinions may increase further.
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