Samil PwC Establishes 'Listing Maintenance Support Center' to Assist Companies Facing Delisting Risk

Over 20 Experts in Finance, Accounting, Tax, and M&A
Providing Customized One-Stop Services for Each Company Leveraging 52 Years of Accounting Know-How

As the audit report submission season for December fiscal year-end corporations approaches, concerns are growing among companies facing trading suspensions, inclusion in management watchlists, and delisting eligibility reviews. In response, Samil PwC established the 'Listing Maintenance Support Center' on the 2nd to assist companies at risk of delisting.

The Samil PwC Listing Maintenance Support Center plans to provide one-stop services offering tailored solutions for each company, including listing maintenance consulting for companies expected to face trading suspensions due to delisting reasons, as well as proactive measures before delisting causes arise.

To this end, Samil PwC has staffed the Listing Maintenance Support Center with over 20 experts, including eight partners specialized in finance, accounting, taxation, M&A, and other fields. They appointed Partner Jeong Ji-won, an expert in listed company services including M&A advisory, listing maintenance, and IPO consulting, who has conducted various activities related to the Korea Exchange, as the center head.

Center Head Jeong stated, "Since the second half of last year, the global economic downturn has continued due to high U.S. interest rates, global inflation, and supply chain instability. As the audit report submission season for December fiscal year-end corporations approaches, anxiety is increasing among companies and investors concerned about delisting." He added, "Based on Samil PwC’s 52 years of expertise as Korea’s leading accounting firm since its establishment, we will provide integrated maintenance consulting services to companies designated for delisting eligibility reviews."

The center plans to contribute to market stabilization by offering not only basic services to prepare materials required for the Korea Exchange’s review of companies designated for delisting eligibility reviews but also various consulting services to improve trading suspension causes and maintain listings. The core is a one-stop service leveraging the accounting firm’s expertise, including preparing delisting review reports, consulting on re-audits or designated auditor responses, internal control consulting, governance improvement consulting, corporate rehabilitation consulting, and investment attraction or sale advisory.

Center Head Jeong emphasized, "Although the Korea Exchange relaxed delisting and management watchlist designation requirements in December last year, considering the continuous increase in trading suspension cases over the past decade and the ongoing domestic and international economic recession, the number of companies facing listing maintenance issues is expected to rise significantly this year as well." He added, "While sales declines or expanded operating losses are inevitable, it is crucial to resolve reasons for audit opinion rejections and maintain listings through re-audits, especially in cases where companies face delisting risks due to inadequate internal controls or major shareholder embezzlement or breach of trust."

The Korea Exchange revised the delisting system last December to reduce corporate burdens and protect investors. It converted formal delisting reasons (such as operating losses for five consecutive business years) into substantive reviews and eased delisting criteria by allowing objections and opportunities to resolve causes for some delisting reasons that previously did not permit objections.

Center Head Jeong noted, "Even among highly promising companies, there are often unexpected audit opinion rejections due to unfamiliarity with accounting standards or immature internal controls." He added, "If experts from various fields within Samil PwC collaborate to seek solutions, we can provide customized solutions tailored to each company’s situation, fulfilling our role in terms of corporate sustainability and investor protection."

The Samil PwC Listing Maintenance Support Center plans to expand service stability by actively building collaborative models with law firms providing legal advisory services related to listing maintenance.