[Market Focus] Kukil Paper Surges as Trading Resumes After Over Two Years

As of 9:50 a.m. on July 21, shares of Kukil Paper were trading at 559 won on the KOSDAQ market, up 30.0% from the previous closing price. This marks the first day of resumed trading after the company avoided delisting for the first time in over two years, and the stock hit the upper price limit.

Kukil Paper is a company that manufactures industrial paper and specialty paper, including thin paper and cigarette packaging paper. It was founded in 1978 and listed on the KOSDAQ in 2004. In 2018, as part of its business diversification, it established a subsidiary, Kukil Graphene, with the aim of developing and mass-producing graphene. At that time, it was considered a leading graphene stock, and its share price surged up to eightfold.

In March 2023, Kukil Paper entered corporate rehabilitation proceedings and trading was suspended due to reasons including failure to pay principal and interest on bonds. Before the trading suspension, the average share price in early 2023 was in the 2,000 won range. Subsequently, an external audit raised concerns about "uncertainty regarding the company's ability to continue as a going concern." It was also revealed that the former CEO sold a large number of shares before applying for rehabilitation proceedings, leading to his indictment and detention by prosecutors on suspicion of using undisclosed information.

The Korea Exchange included Kukil Paper as a candidate for delisting review in 2023, citing reasons such as a disclaimer of opinion in the 2022 fiscal year audit. However, the reason for delisting was resolved after the audit opinion from the accounting firm was changed to "unqualified." On July 18, the Korea Exchange's Corporate Review Committee made a final decision to maintain the listing, and trading resumed on this day.