Alphabiz - Korea Exchange Pledges Process Overhaul and Accountability After SCM Life Science Listing Error

Photo courtesy of Korea Exchange

 

 

[Alpha Biz= Paul Lee] The Korea Exchange (KRX) announced on March 18 that it will improve its disclosure processes and take responsibility for investor losses following a recent reversal of its decision regarding SCM Life Science’s designation as a managed stock.

As an immediate measure, the exchange plans to establish a “market action consultative body” (tentative name) composed of one deputy executive, one department head, and six team leaders.

The consultative body will conduct cross-verification of disclosure matters involving significant market actions—such as designation or removal of managed stock status and delisting triggers—before final decisions are implemented, given their substantial impact on investors.

In the mid- to long-term, KRX will conduct a comprehensive review of its disclosure system to identify risk factors and enhance the use of artificial intelligence (AI) in its next-generation listing and disclosure platform currently under development.

Regarding potential investor compensation arising from the error, KRX stated, “We will prioritize investor protection and take all necessary responsibility,” adding that it will promptly review and implement appropriate measures.

Previously, on March 16, KRX announced the removal of SCM Life Science from the managed stock list, only to reverse the decision the following day, citing an error.

The incident triggered sharp fluctuations in SCM Life Science’s stock price, drawing widespread criticism.

 

 

 

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)