Exchange Announces Market Measures for Fiscal Year-End Corporations Last Year
KOSPI and KOSDAQ Face Delisting Risk for a Total of 55 Companies
As a result of market measures related to the year-end settlement corporations last year, delisting reasons occurred in 13 companies on the KOSPI and 42 companies on the KOSDAQ.
On the 9th, the Korea Exchange announced the status of market measures related to the December year-end settlement corporations for the 2023 business year in the KOSPI and KOSDAQ markets.
A total of 13 companies in the KOSPI market had reasons for delisting. Among them, seven companies?Taeyoung Construction, Capro, EID, Gukbo, Hanchang, Daeyu Plus, and Wellbiotech?received a disclaimer of opinion for the first time. Four companies?IHQ, KH Philux, InvioGen, and Sewon ENC?received a disclaimer of opinion for two consecutive years. Additionally, BK Tops did not submit a business report, and A-REITs failed to meet sales requirements for two consecutive years.
Companies that received a disclaimer of opinion or did not submit a business report can file an objection within 15 days from the date of delisting notification, and upon objection, the Exchange will decide whether to grant a remedial period.
For companies with a disclaimer of opinion for two consecutive years, the decision on delisting will be made after the remedial period ends on the 16th, following a review by the Listing Committee.
Five companies?Taeyoung Construction, Gukbo, Hanchang, Wellbiotech, and TY Holdings?were newly designated as management stocks due to delisting reasons and audit scope limitations. Meanwhile, Hiteuron Systems, Iljeong Industrial, and Seondo Electric were removed from the management stock designation.
In the KOSDAQ market, a total of 42 companies had reasons for delisting, a 35.4% increase compared to 31 companies last year. Thirty companies, including Winia Aid, M-Venture Investment, AT Semicon, Codaco, and VIDI, had new auditor disclaimer reasons, while 10 companies such as Korea Technology, Cellivery, Vident, KH Construction, and Newgelab Pharma had second-year disclaimer opinions. Two companies, Izmedia and Smart Solutions, had third-year disclaimer opinions.
Companies with new auditor disclaimer reasons can file an objection within 15 business days from the delisting notification date, and if an objection is filed, the decision on granting a remedial period will be made within 10 days from the day after the statutory submission deadline of the next business report.
Companies with auditor disclaimer reasons for two consecutive years will have their delisting status decided through a review and resolution by the Corporate Evaluation Committee in 2024, combined with the 2022 business year auditor disclaimer delisting reasons. Companies with auditor disclaimer reasons for three or more years have already been decided for delisting through the Corporate Evaluation Committee’s review and resolution, so no separate delisting procedure is required.
A total of 20 companies were newly designated as management stocks, and 4 companies were removed from the designation. Compared to last year, new designations increased by 2 companies, and removals decreased by 5 companies.
A total of 35 companies were newly designated as investment caution stocks, and 26 companies were removed. The number of companies with operating losses for five consecutive business years increased, with new designations rising by 9 companies and removals decreasing by 1 company compared to last year.
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