Regarding ShillaJen's Delisting Decision... "Lost 700 Million Won Saved Over 20 Years"

Shinilajen Delisting Decision... "Will Actively Explain to KOSDAQ Market Committee"

On the afternoon of the 18th, when the Corporate Review Committee was held to review the resumption of trading of ShillaJen, a KOSDAQ-listed company whose stock trading was suspended due to embezzlement and breach of trust by the management, members of the ShillaJen Shareholders' Union held a rally in front of the Korea Exchange in Yeouido, Yeongdeungpo-gu, Seoul, urging the resumption of trading.
[Image source=Yonhap News]

[Asia Economy Reporter Heo Midam] The Korea Exchange's decision to delist SillaJen, whose trading had been suspended for 1 year and 8 months, has sparked strong backlash from small shareholders. Investor A, who revealed that he invested 700 million won in SillaJen, appealed, "It makes no sense that the Korea Exchange gave an AA rating to list the company and then decided to delist it."

On the morning of the 20th, A appeared on CBS Radio's 'Kim Hyun-jung's News Show' and said, "I have been working since my 20s and now run a personal business. This is money I have saved for almost 20 years. To prepare a little more for future retirement funds or children's education expenses, I broke all my savings and funds and invested about 700 million won, putting everything into this company."

He continued, "I haven't told my family yet. I have nowhere to complain," adding, "Due to the SillaJen issue, there have been family conflicts, frequent marital fights, and even some divorces. I heard that some people have even committed suicide. I am in that situation too. I am enduring it alone," he added.

He said, "After hearing the delisting news, individual investors have lost their mental stability. Shareholders have been waiting for the resumption of trading during the suspension period, but this is so absurd and infuriating."

When asked by the host, "What did you base your investment on?" A said, "SillaJen was listed in December 2016. It was listed as a technology-specialized listing company. It was given an AA rating at the time." He added, "The Korea Exchange's professional institutions gave the highest evaluation. They recognized the company's future vision, clinical trials, new drugs, future potential, and technological capabilities, so I trusted this company and the exchange and invested."

A said, "The reason for the trading suspension was embezzlement and breach of trust by the former management," emphasizing, "The exchange initially suspended trading under the pretext of protecting livelihood investors, but the biggest problem is that the embezzlement and breach of trust by management occurred before the listing."

He added, "Currently, there are 170,000 individual investors in SillaJen. Including families, it would be 500,000 to 600,000 people," and pointed out, "We cannot know what happened before the listing. The exchange gave an AA rating and listed the company. Individual investors trusted that and invested, so delisting makes no sense."

He also said, "After the delisting decision on the 18th, many shareholders are shedding tears. Many cannot sleep and stay up all night because they cannot endure it," adding, "I also feel really hard and unbearable when I am alone, but talking and communicating with those people makes me feel heartbroken and unfair."

Meanwhile, SillaJen is a bio-venture company listed on the KOSDAQ market in 2016 with its liver cancer treatment drug 'Pexa-Vec.' At the time, SillaJen rose to the second-largest market capitalization on KOSDAQ as 'Pexa-Vec' was highly valued for its development potential. However, trading was suspended in May 2020 due to clinical trial failures and embezzlement and breach of trust by management.

The Korea Exchange ultimately held a corporate review committee meeting from 2 p.m. on the 18th to deliberate and decide on SillaJen's delisting, concluding with a decision to delist. The exchange reportedly decided to delist SillaJen due to uncertainties regarding the company's continued existence. The final delisting decision will be made by the KOSDAQ Market Committee within 20 business days.

SillaJen stated on its website, "The Korea Exchange Corporate Review Committee decided to delist our stock following a substantive review of our listing eligibility," adding, "We will actively present our case at the KOSDAQ Market Committee." It also apologized, saying, "We are sorry for causing concern to our shareholders."

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