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Geumyang headquarters (Photo: Geumyang) |
[Alpha Biz= Kim Jisun] South Korean battery company Geumyang is facing an accelerated delisting process after receiving a second consecutive “disclaimer of opinion” from its external auditor.
According to filings with the Financial Supervisory Service on March 24, the Korea Exchange disclosed that Geumyang’s financial statements for the 2025 fiscal year received a disclaimer of opinion due to limitations in the scope of the audit. Under KOSPI listing rules, such a finding constitutes grounds for delisting.
Shinhan Accounting Corp., the external auditor, reported that Geumyang posted an operating loss of 41.8 billion won and a net loss of 53.6 billion won as of the end of last year. It also noted that the company’s current liabilities exceeded current assets by 611.2 billion won, raising significant doubt about its ability to continue as a going concern.
Geumyang had already received a disclaimer of opinion for its 2024 financial statements in March last year, leading to a suspension of trading. The exchange has granted the company a grace period until April 14 to address delisting concerns and demonstrate its viability, but the second consecutive disclaimer further complicates its position.
A final decision on delisting is expected by mid-May. After the improvement period ends, Geumyang must request a review of its compliance within seven days. The exchange will then convene a listing committee within 20 business days to determine whether to delist the company, with a final decision to be made within three days of the meeting.
If delisting is confirmed, investors will be given a seven-day liquidation trading period before the shares are removed from the market. However, the company may seek a court injunction to suspend the delisting decision, which would halt further procedures pending a legal ruling.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065612910799030
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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