[Asia Economy Reporter Myunghwan Lee] The Korea Exchange's KOSPI Market Division announced on the 28th that it will grant Kyeyang Electric an improvement period until August 31 and maintain the trading suspension.
Through the announcement on the same day, the Korea Exchange stated, "After deliberation by the Corporate Evaluation Committee (CEC), an improvement period was granted to Kyeyang Electric until August 31," and "During the improvement period, the trading suspension of the issued shares will continue."
It added, "If the improvement plan is not implemented during the improvement period or if there is an application, or if any of the cases under Article 49, Paragraph 4 of the KOSPI Market Listing Regulations apply, the CEC may hold a meeting before the end of the improvement period to decide whether to maintain listing eligibility."
Kyeyang Electric reported on February 15 that it had filed a complaint against an employee in its finance team, Mr. Kim, on charges of embezzlement (violation of the Act on the Aggravated Punishment of Specific Economic Crimes), which triggered a substantive review of listing eligibility and led to the suspension of trading. The Exchange decided on the 10th of last month to subject Kyeyang Electric to a substantive review of listing eligibility.
The estimated embezzlement amount by the Kyeyang Electric employee is 24.5 billion KRW, which corresponds to 12.7% of the company's equity capital of 192.6 billion KRW.
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