A total of 36 companies with December fiscal year-ends listed on the domestic stock market are at risk of being delisted.
On the 10th, the Korea Exchange announced that a total of 36 companies, including 8 on the KOSPI market and 28 on the KOSDAQ market, had reasons for delisting due to adverse or qualified audit opinions for the 2022 fiscal year.
On the KOSPI market, five companies?Sewon ENC, IHQ, InvivoGen, Iljung Industrial, and KH Philux?received new delisting notifications. These companies can file objections within 15 days from the date of the delisting notice. If an objection is submitted, an improvement period will be granted until 10 days after the statutory deadline for submitting the next fiscal year’s business report (April 10, following the March 31 deadline).
Three companies?BK Tops, Seondo Electric, and Hiteuron Systems?have had delisting reasons for two consecutive years. After the improvement period ends on April 14, the delisting decision will be made following a review by the Listing Committee.
Additionally, six companies were newly designated as management stocks: four companies with delisting reasons, one company (Capro) with limited audit scope, and one company (A-REITs) failing to meet the sales threshold (5 billion KRW).
On the other hand, KG Mobility, which was previously a management stock, received a clean audit opinion and was removed from the management stock designation.
On the KOSDAQ market, 28 companies received adverse audit opinions, resulting in delisting reasons. This number is about 36% lower than last year’s 44 companies.
Fifteen companies?Newgelab Pharma, Kukil Paper, TLI, Selfie Global, SD Biotechnologies, Cellivery, Korea Technology, Bucket Studio, Vident, LIS, NGSTechnology, KH Construction, Jangwon Tech, Noble M&B, and KH Electronics?have newly incurred delisting reasons this year. These companies can file objections within 15 business days from the date of the delisting notice. In such cases, they will be granted an improvement period of about one year, lasting until 10 days after the statutory deadline for submitting the next business report.
Ten companies?PHC, Izmedia, Syswork, Intromedic, Smart Solutions, Ginaine Pharmaceutical, GTG Wellness, ITX-AI, and others?that have had delisting reasons for two consecutive years will have their delisting status reviewed and decided by the Corporate Evaluation Committee this year, combining the 2021 audit opinion delisting reasons.
For three companies with delisting reasons for three consecutive years, delisting has already been decided, and no further procedures will be conducted.
A total of 18 KOSDAQ-listed companies were newly designated as management stocks this time, while nine existing companies were removed from the designation. Additionally, 26 KOSDAQ-listed companies were newly designated as investment caution stocks, mainly due to adverse internal accounting control system opinions. Twenty-seven companies were removed from the investment caution stock designation.
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