On October 6, the Seoul Southern District Court's 51st Civil Division granted an injunction against the delisting decisions of Joyon Tech, a KOSPI-listed company, and KM Pharmaceutical, a KOSDAQ-listed firm, which had been filed against the Korea Exchange.
The court reportedly found issues with the process, noting that the companies were not given sufficient opportunity to present their cases and that the market capitalization thresholds were raised earlier than initially planned.
Officials from the financial authorities and the Korea Exchange appeared taken aback by the ruling. Kim Seong-cheon, head of the KOSDAQ Market Division's Disclosure System Team, stated during the 'KOSDAQ Day' event at the Korea Exchange, "There has been a recent court decision, and we are taking follow-up actions regarding this matter. While I cannot provide specific details as we are currently preparing an internal report, we will offer an explanation soon."
The ruling has increased the likelihood of legal actions from other companies undergoing delisting procedures. Observers suggest that the court's injunction could delay the transition of companies with insufficient market capitalization to the KONEX market, as those firms may remain in their current markets while awaiting legal determinations.
In fact, the timeline for the first KONEX transition case involving Shilla S&G has already been pushed back.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.