[Asia Economy Reporter Myunghwan Lee] A total of 38 KOSDAQ-listed companies have been identified as facing delisting risks. Additionally, 24 companies were newly designated as management-listed companies.
The KOSDAQ Market Headquarters of the Korea Exchange announced on the 3rd that, after reviewing the business reports of companies with December 2021 fiscal year-ends submitted by the 31st of last month, these market measures were taken. Specifically, 38 companies triggered delisting reasons, 24 companies were newly designated as management-listed companies (20 companies were released from designation), and 31 companies were newly designated as investment caution-listed companies (20 companies were released from designation).
Among the companies with delisting reasons due to adverse audit opinions for the 2021 fiscal year are EdisonEV, Point Mobile, Hansong Neotek, and 35 others. These companies can file objections within 15 business days from the date they receive the delisting notice. If an objection is filed, an improvement period is granted from the day after the statutory submission deadline of the next business report until April 10.
Among these, 14 companies including UCI, SD System, Joheun Saramdeul, Neuros, and COWON have had delisting reasons for two consecutive years. For these companies, the delisting reasons from the 2020 fiscal year audit opinions will be combined and reviewed at the 2022 Corporate Evaluation Committee (CEC) to decide on delisting.
There are also six companies with delisting reasons for three consecutive years: Hanp, Hyeonjin Material, Seyoung D&C, SHNL, Arion, and Hanguk Corporation. Since delisting was already decided at the CEC meetings held in 2021 and 2022, no further delisting procedures will be conducted for these companies.
The companies newly designated as management-listed due to business audit results include 24 companies such as UIEL, Intromedic, and AD Chips, slightly increasing from 21 companies last year. Twenty companies, including Dongbang Sunki, Taewoong, and Seojin Automotive, were released from management-listed designation, which is an increase compared to 14 companies released last year.
A total of 31 companies were newly designated as investment caution-listed companies due to internal accounting control system inadequacies, including Intromedic, UST, and Ginaine Pharm. Meanwhile, 20 companies resolved their inadequacies and were removed from the investment caution-listed category. The net increase in investment caution-listed companies (newly designated minus released) was 11 companies, up from 7 companies last year.
Meanwhile, the business report review target for the 2021 fiscal year consisted of 1,503 companies out of 1,524 KOSDAQ-listed companies with December fiscal year-ends. Sixteen companies did not submit audit reports due to reporting a five-business-day delay in business report submission and exemption from penalties for delayed submission.
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