7 KOSPI-Listed Companies Face Delisting Concerns... Dongbu Steel and Hanjin Heavy Industries Removed from Management Item List

[Asia Economy Reporter Oh Ju-yeon] Seven companies listed on the Korea Composite Stock Price Index (KOSPI) are at risk of being delisted. Meanwhile, some companies previously designated as management stocks, such as Dongbu Steel and Hanjin Heavy Industries, have been relieved from the management stock status.

On the 31st, the Korea Exchange announced the companies undergoing delisting procedures, those newly designated as management stocks, and those removed from management stock status following the submission deadline for the 2019 business year reports of KOSPI companies with December fiscal year-end, which ended the previous day.

Accordingly, seven companies that received an audit opinion of "disclaimer" (adverse) must proceed with delisting procedures. Among them, five companies?Yuyang D&U, Zico, Polus Biopharm, Converz, and Highgold 8?will have their delisting status decided by the Listing Disclosure Committee after submitting an objection. The deadline for submitting objections is the 9th of next month for Yuyang E&U and Highgold 8, the 20th for Zico and Polus Biopharm, and the 21st for Converz.

Additionally, two companies, Shinhan and Woongjin Energy, which received a "disclaimer" audit opinion for two consecutive years, will have their delisting status decided by the Listing Disclosure Committee after the improvement period ends on the 9th of next month.

Two companies were newly designated as management stocks: Cheongho Comnet and Heung-A Shipping. Cheongho Comnet was designated due to capital erosion exceeding 50%, and Heung-A Shipping due to failure to submit the business report. Cheongho Comnet’s capital erosion rate reached 84%, leading to its designation as a management stock on the 20th. Heung-A Shipping will face delisting procedures if it fails to submit the business report by the 13th of next month.

On the other hand, among nine companies previously designated as management stocks, two?Dongbu Steel and Hanjin Heavy Industries?were removed from the management stock status. Dongbu Steel received a "fair" audit opinion, and Hanjin Heavy Industries resolved the issue of capital erosion exceeding 50%, thus exiting the management stock designation.

Meanwhile, Kiwi Media Group will review whether it is subject to a substantial examination of listing eligibility based on evidence that it resolved the full capital erosion as of the end of 2019 and confirmation that its quarterly sales fell below 500 million KRW.

This content was produced with the assistance of AI translation services.