Fifty-Four Listed Companies Face Delisting Risk Due to Insufficient Auditor Opinions

Fifty-four listed companies with December fiscal year-ends (12 on the KOSPI and 42 on the KOSDAQ) are at risk of being delisted from the stock market due to reasons such as a disclaimer of opinion from auditors.

Korea Exchange. Photo by Jin-Hyung Kang

According to the Korea Exchange on April 9, following the deadline for submitting annual reports for fiscal year 2025 from companies with December fiscal year-ends, 12 companies on the KOSPI were found to have grounds for delisting.

Seven companies—Eastaco, Dynamic Design, STX, Daeho AL, Wilbes, Hands Corporation, and Kwangmyung Electric—have, for the first time, received a disclaimer of opinion from their auditors, triggering delisting grounds. These companies can file an objection within 15 days of notification. If an objection is filed, the exchange will decide whether to grant a grace period for improvement.

Four companies—Geumyang, KC Green Holdings, Beomyang Construction, and Sambu Construction—have received disclaimers of opinion for two consecutive years. After their improvement period concludes on April 14, the Listing Disclosure Committee will review and determine whether to delist them.

Hanchang, which has received a disclaimer of opinion for three consecutive years, has already been decided for delisting by the Listing Disclosure Committee, so no further delisting procedures are required.

The Korea Exchange newly designated eight companies—including Eastaco, Daeho AL, Hands Corporation, Wilbes, Kwangmyung Electric, Exicure Hitron, Genewon Life Sciences, and ARITS—as stocks under administrative supervision. Conversely, Star SM REITs, EN Plus, and KC Cottrell have been removed from the administrative supervision list.

In the KOSDAQ market, 42 companies have triggered delisting grounds due to a disclaimer of opinion from their auditors.

Twenty-three companies—including Dawonsys, Rolling Stone, and Medicox—have, for the first time, met grounds for delisting. These companies can file an objection within 15 business days from the date of delisting notification. If an objection is filed, a grace period of up to 10 days from the day after the statutory deadline for submitting the next annual report will be granted.

Eleven companies—including Olipass, DA Technology, and Samyoung ENC—have received a disclaimer of opinion for two consecutive years. This year, the Corporate Review Committee will review and decide on their delisting.

Eight companies—including Terrascience, Noble M&B, and Sunshine Food—have received disclaimers of opinion for three or more consecutive years and have already been decided for delisting by the Corporate Review Committee, so no further delisting procedure is required.

The Korea Exchange newly designated 17 companies as stocks under administrative supervision and removed 10 from the list.

This content was produced with the assistance of AI translation services.