The Korea Exchange warned on the 9th about designating Hanwha Aerospace as an insincere disclosure corporation.
Previously, Hanwha Aerospace announced on the 20th of last month that it would conduct a capital increase of 3.6 trillion won. This is the largest scale in the history of the Korean stock market, and the company noted that it is to secure investment funds to leap as a global defense corporation.
However, suspicions were raised that the funds secured through the capital increase were not being used for the process of succession of management rights to major shareholders. The Financial Supervisory Service also intervened, requesting corrections to the securities registration statement for the capital increase. In response, Hanwha Aerospace reduced the scale of the capital increase to 2.3 trillion won on the 8th. This is a decrease of 1.3 trillion won (36.1%) from the initially announced amount.
The Korea Exchange pointed out that Hanwha Aerospace had changed the number of shares to be issued and the issue amount by more than 20% from the initially disclosed capital increase decision and stated that it could designate them as an insincere disclosure corporation. If specific results are confirmed, such as being re-designated as an insincere disclosure corporation, a new announcement will be made.
If the penalty points imposed on Hanwha Aerospace by the Korea Exchange's securities market headquarters exceed 10 points, trading transactions will be suspended for one day on the date of designation.