Kumyang, which is facing delisting due to its secondary battery-related stocks, submitted a petition to the Korea Exchange. The delisting reason arose from an 'opinion rejection' by the external auditor.
According to the Korea Exchange on the 11th, Kumyang submitted a petition against the delisting on the 10th.
Kumyang disclosed that a delisting reason occurred due to the rejection of the external auditor's audit opinion on the 21st of last month. The exchange indicated it would initiate the delisting substantive review procedure, suspending stock transactions and stating it would accept petitions until the 11th.
With Kumyang submitting the petition, the exchange will convene a listing disclosure committee to review the financial structure improvement plan. The review will be conducted within 20 business days, and the results must be decided within three business days. The measures are expected to be determined by mid-next month.
If the exchange grants an improvement period, stock transactions will be suspended, and the final decision on whether to maintain or delist will depend on the implementation of the improvement plan. For KOSPI-listed companies, an improvement period of up to two years can be granted.
Kumyang revealed a plan for a 450 billion won capital increase for shareholders last September but completely withdrew the plan in January this year. As a result, it was designated as a noncompliant disclosure corporation. Earlier last year, it was also designated as a noncompliant disclosure corporation due to controversy over inflating performance estimates for a Mongolian mine.
Kumyang once reached a market capitalization of 10 trillion won, but it has now shrunk to around 600 billion won.