Three Ewha Group affiliates, which have grounds for delisting due to allegations of embezzlement and breach of trust by Kim Young-jun, chairman of Ewha Group, will undergo a substantive review of listing eligibility.
On the 13th, the Korea Exchange's KOSPI and KOSDAQ Market Headquarters announced that Ewha Electric, E-Tron, and EID have been designated as subjects for review by the Corporate Evaluation Committee (CEC).
Additionally, their false or omitted disclosures have also been designated as subjects for the substantive review of listing eligibility. Accordingly, the trading suspension measures on Ewha Electric, E-Tron, and EID, which have been halted since May 12, will be maintained for the time being.
According to the listing regulations of the KOSPI and KOSDAQ markets, a listed company with grounds for a substantive review of listing eligibility must first be examined to determine whether it falls under the CEC’s review.
If it is not subject to the CEC review, trading will resume immediately; however, if it is subject to review, the CEC, which serves as the first-instance body examining the company’s listing eligibility, will decide on delisting, granting a correction period, or resuming trading (maintaining listing).
These companies were also designated as unfaithful disclosure corporations for submitting false or materially incomplete responses to the Exchange’s inquiry disclosure requests.
Earlier, on May 10, when the prosecution requested arrest warrants for Chairman Kim Young-jun and President Kim Sung-kyu, the Exchange demanded inquiry disclosures, but these companies denied the allegations or underreported the amount involved in their disclosures.
As a result, trading briefly resumed, but based on tips, the Exchange identified discrepancies between the disclosures of Ewha Group affiliates and the facts, and subsequently suspended trading again.
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