[Alpha Biz= Paul Lee] Trading of Sambu Construction shares has been suspended from April 1 due to a "disclaimer of opinion" in its latest audit report. This marks the second consecutive year that Sambu Construction has received an unfavorable audit opinion, meeting the criteria for delisting.
According to the Korea Exchange (KRX), trading of Sambu Construction shares on the KOSPI market has been halted. The suspension is due to the audit opinion refusal, and the exact date for resumption remains undetermined. This is the second time this year that trading in Sambu Construction shares has been suspended. The company has until April 21 to file an objection to the measure.
Previously, in February, Sambu Construction applied for court receivership at the Seoul Bankruptcy Court, leading to a trading suspension. After the court approved the restructuring process, trading resumed on March 7. However, the company’s stock price had already plummeted to "penny stock" levels, falling below 500 KRW. On its last trading day (March 31), the stock closed at 347 KRW, down 3.07% from the previous session.
The KRX had previously strengthened regulations to mandate immediate delisting for companies receiving unfavorable audit opinions for two consecutive years. The revised rule will take effect on July 1, 2024, though companies undergoing rehabilitation or workout processes may be granted additional improvement periods.
Ranked 71st in construction capability evaluation, Sambu Construction was once considered a promising stock for Ukraine’s post-war reconstruction efforts. Its stock, which was in the 1,000 KRW range, surged to a peak of 5,500 KRW on July 17, 2023. However, allegations of stock manipulation soon surfaced, leading to a sharp decline. The Financial Supervisory Service is currently investigating the suspected stock manipulation case involving Sambu Construction.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
