The Korea Exchange announced on the 1st that it has decided to delist three listed companies affiliated with the Ewha Group, whose trading was suspended due to embezzlement and breach of trust charges against Chairman Kim Young-jun.
On the same day, the Exchange held a Corporate Evaluation Committee (CEC) meeting and decided to delist EID, a listed company on the KOSPI market, and Ewha Electric and E-Tron, listed companies on the KOSDAQ market.
The Exchange explained regarding EID, "After comprehensively considering the improvement plan, the continuity of the company, management transparency, and other public interest realization and investor protection factors, it was determined that the delisting criteria are met."
Earlier, on May 10, when the prosecution requested arrest warrants for Ewha Group Chairman Kim Young-jun and President Kim Sung-kyu, the Exchange demanded a disclosure inquiry. However, these companies denied the charges or disclosed a reduced amount of the alleged damage. Although trading briefly resumed, the Exchange, based on whistleblower reports, identified discrepancies in the disclosures of Ewha Group affiliates and suspended trading.
According to the KOSPI listing regulations, EID may file an objection with the Exchange within 15 business days from the date of receiving the delisting notice. If an objection is filed, the Exchange will hold a Listing Disclosure Committee meeting within 20 days to reconsider the delisting decision.
The final delisting decision for Ewha Electric and E-Tron will be confirmed by the KOSDAQ Market Committee, which will convene within 20 business days after the CEC review date. If the KOSDAQ Market Committee also decides on delisting, an objection can be filed, and in that case, the KOSDAQ Market Committee will reassess the delisting decision once again.
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