42 Delisted Companies Related to 5-Year Financial Statements... 90.5% with Adverse Audit Opinions

Among the companies delisted in the past five years, those delisted due to settlement-related reasons accounted for 24%, with 'adverse audit opinions' representing the largest proportion of settlement-related delisting causes.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

According to the Korea Exchange on the 6th, out of 175 companies delisted in the past five years, 42 companies were delisted due to settlement-related reasons, accounting for 24.0%. The proportion compared to the total delisted companies last year decreased from 25.0% the previous year to 16.3%.

Among the settlement-related delisting causes, 'adverse audit opinions' accounted for the largest share with 38 companies (90.5%). By market, the reasons for adverse audit opinions were 100% in the KOSPI market and 89.2% in the KOSDAQ market, representing a significant portion in both markets. Other reasons included 'non-submission of business reports' (4 companies, 9.5%).

Twenty-two companies (5 in the KOSPI market and 17 in the KOSDAQ market) whose delisting was deferred due to adverse audit opinions for the 2022 fiscal year are expected to have their delisting status determined based on the audit opinions for the 2023 fiscal year.

A Korea Exchange official stated, "During the settlement period, important disclosures related to investments are concentrated, and significant market actions such as delisting are accompanied, which may cause unexpected investment losses. Therefore, investors should exercise special caution when investing in companies with insufficient management stability or poor financial conditions."

Additionally, the Korea Exchange provided guidelines for listed companies during the settlement period. Audit reports contain important information for investment decisions and may lead to market actions, so they must be disclosed immediately upon receipt. Special attention is required regarding the holding of shareholders' meetings and the appointment of outside directors and auditors. In particular, audit reports and business reports must be provided to shareholders at least one week before the shareholders' meeting, which can be substituted by submission (disclosure) to the Korea Exchange and the Financial Services Commission (Financial Supervisory Service).

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