Shinrajen Facing Delisting Crisis... Exchange Decides to Subject to Listing Eligibility Substantial Review

Former Sillajen CEO Moon Eun-sang entering the courtroom at the Southern District Court in Yangcheon-gu, Seoul, on the morning of the 11th of last month to attend a detention hearing (warrant review). Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] The Korea Exchange announced on the 19th that it has decided to subject ShillaJen, a KOSDAQ bio company, to a substantive review of listing eligibility.

The Exchange explained, "Within 15 business days, the Corporate Review Committee will deliberate and resolve whether to delist the company or grant a period for improvement."

However, if ShillaJen submits an improvement plan within this period, the Corporate Review Committee's deliberation will be postponed for up to 20 business days from the submission date.

The substantive review of listing eligibility is a process that comprehensively examines whether there are issues with maintaining the company's listing. Depending on the review results, ShillaJen may be delisted from the KOSDAQ market.

Previously, ShillaJen became subject to the substantive review of listing eligibility due to allegations of embezzlement and breach of trust involving former and current executives, including former CEO Moon Eun-sang.

Former CEO Moon was indicted and detained on the 29th of last month on charges including unfair acquisition of company shares through a paper company.

According to KOSDAQ market listing regulations, if embezzlement or breach of trust allegations above a certain scale are confirmed, and it is deemed necessary to delist the company after comprehensively considering the company's continuity, management transparency, and market soundness, the Exchange may deliberate and resolve to delist the company.

The Exchange has suspended trading of ShillaJen's shares since the 4th of last month and has been reviewing whether the company falls under the substantive review of listing eligibility.

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