[Alpha Biz= Kim Jisun] FADU has averted the risk of delisting after the Korea Exchange concluded that its recent indictment for alleged violations of capital markets law does not constitute grounds for a delisting review, allowing trading in its shares to resume.
The Korea Exchange (KRX) said on February 2 that FADU would be excluded from substantive delisting review, following an examination triggered by the company’s indictment. Trading in FADU shares, which had been suspended since December 19, resumed on February 3.
Prosecutors indicted FADU over allegations that the company significantly overstated its revenue projections during its August 2023 KOSDAQ listing under a technology-special listing scheme. While FADU had forecast annual revenue of KRW 120.3 billion, actual revenue reportedly reached only KRW 22.5 billion, raising concerns over disclosure accuracy.
The decision means that the issues cited by prosecutors will no longer serve as grounds for delisting, even if a guilty verdict is handed down in court. A KRX official added that future criminal rulings would not lead to renewed trading suspension or equivalent measures.
Ahead of the trading resumption, FADU announced changes to its board following the resignation of co-CEO Lee Ji-hyo, who had overseen the company’s IPO process. The company has transitioned to a single-CEO structure under Nam Yi-hyun and said it has strengthened compliance and internal controls as part of broader governance reforms.
Market observers also note that improving performance prospects driven by expanding demand in the artificial intelligence semiconductor market could support a reassessment of FADU’s corporate value, now that immediate delisting concerns have been removed.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
