Hyosung Chemical, Stock Trading Halted... Full Capital Erosion Last Year

"Resolved as of January this year"
"Trading to Resume Soon"

Hyosung Chemical was in a state of capital erosion based on consolidated financial statements at the end of last year. Accordingly, stock trading will be suspended starting from the 4th of next month. However, the company stated that capital erosion was resolved based on consolidated financial statements as of the end of January this year, and that it will submit a special purpose audit report within next month to resume trading as soon as possible.

Hyosung. Photo by Jinhyung Kang aymsdream@

On the 28th, Hyosung Chemical disclosed that as of the end of last year, its capital was fully eroded. Due to increased liabilities of its Vietnam subsidiary, the total equity excluding non-controlling interests was -68 billion KRW, recording a ratio of -358.63% compared to the capital stock.

If the company fails to submit evidence proving the resolution of the capital erosion by the 31st of next month, it may be subject to delisting criteria. If evidence proving the resolution of the cause is submitted, the company will undergo a review to determine whether it falls under the substantive examination of listing eligibility according to Article 49 of the Korea Exchange Listing Regulations. During this period, stock trading of Hyosung Chemical will be suspended.

Hyosung Chemical announced that the capital erosion was resolved based on consolidated financial statements as of the end of January this year, reflecting gains from the sale of its special gases business division in January. As of the consolidated financial statements dated January 31, the total equity excluding non-controlling interests reached 1897.02% of the capital stock ratio.

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