Samchundang Pharm shares fell more than 14% after the Korea Exchange designated the company as an “unfaithful disclosure” firm over a disclosure lapse.
According to the Korea Exchange on April 22, as of 10:38 a.m., the stock was trading at 407,500 won, down 14.30% from the previous session. Early in the session, it briefly dropped more than 28% to 342,000 won.
The Korea Exchange’s KOSDAQ Market Division said the company was designated for failing to meet disclosure obligations and was assessed five penalty points, according to a filing released the previous day.
Samchundang Pharm said it “humbly accepts” the exchange’s designation. The company said the issue stemmed from some information in a specific press release that could be interpreted differently from disclosure standards, adding that it is not directly related to the company’s business structure or performance.
The exchange had previously issued a notice on March 31 that it planned to designate the company for failing to make a fair disclosure of outlooks or forecasts related to operating performance. With the latest action, the company’s cumulative penalty points over the past year total five.
Under exchange rules, a single case resulting in eight or more penalty points can trigger a one-day trading suspension. If cumulative penalty points over the past year exceed 15, the company may be subject to a substantive review of listing eligibility.
* This article has been translated by AI.
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