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Photo courtesy of the Korea Exchange |
[Alpha Biz= Paul Lee] As Busan-based logistics company Kukbo is set to be delisted on the 27th, a total of seven companies headquartered in Busan have been designated as firms under administrative supervision, putting them at risk of being forced out of the stock market. The combined market capitalization of these companies stands at approximately 818.3 billion won.
According to the Korea Exchange’s disclosure system (KIND) on the 26th, Kukbo’s delisting was finalized on the 12th due to two consecutive years of disclaimer audit opinions, with liquidation trading conducted from the 16th to the 26th.
Industry observers say Kukbo’s delisting was widely expected. Although a delisting notice was first announced on May 19 last year, the company temporarily delayed the process by filing for an injunction to suspend its effect. However, the court dismissed the injunction on the 12th, paving the way for final delisting.
Following Kukbo, Busanjugong (auto parts manufacturing), Hanchang (real estate development), and VUTechnology (software development) are also widely seen as being on the brink of delisting. These three companies have temporarily halted delisting procedures through court injunctions, similar to Kukbo.
Nevertheless, given that their delisting decisions were made after improvement periods and regulatory reviews—and that injunction approvals have been extremely rare since 2022—market consensus is that these companies are also likely to be delisted.
Busanjugong was subject to substantive listing eligibility review following embezzlement and breach-of-trust allegations in 2023 and was granted improvement periods twice. Hanchang was reviewed after receiving disclaimer audit opinions for two consecutive years, while VUTechnology was notified of delisting due to audit opinions citing uncertainty over its ability to continue as a going concern.
Marine communication equipment maker Samyung ENC is also considered highly likely to be delisted. The company is under review due to embezzlement-related allegations, with its improvement period set to expire on April 4. An evaluation of its improvement plan will be conducted within 15 days thereafter, meaning a delisting decision is expected in April.
Samyung ENC has filed for court-led rehabilitation and is embroiled in ongoing management disputes. It also faces a potential designation as an unfaithful disclosure entity after reversing a disclosure on the 16th.
In addition, Kumyang and Beomyung Construction are expected to have their delisting status determined in April. Kumyang, once a leading secondary battery stock, has approximately 240,000 retail shareholders, while Beomyung Construction is considered a mid-sized builder often viewed as a barometer of the construction industry—making the outcome particularly noteworthy.
Meanwhile, Beomyung Construction is reportedly reviewing various options, including the sale of its logistics subsidiary Koryo General Logistics, as part of its court rehabilitation process. Kumyang is attempting to secure financial stability through third-party allotment capital increases and short-term borrowing, but has faced repeated setbacks, having postponed its capital increase schedule six times since August last year.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
