Two foreign universities open branch campuses in South Korea

21 firms may be delisted from Korea Exchange

kh close

 

Published : 2014-03-28 21:25
Updated : 2014-03-28 21:25

Up to 21 companies listed on the Korean stock market are likely to face delisting this year, the local bourse operator said Friday.

The companies, including seven firms on the main bourse, have been found to have negative capital or have received a disclaimer of opinion from auditors on their financial statements, according to the Korea Exchange.

A disclaimer of opinion is issued when an auditor has been unable to obtain appropriate audit evidence and is unable to express an opinion on financial statements.

Also, some of the firms are expected to fail the March 31 deadline for the audit reports.

STX Group affiliates ― STX Offshore and Shipbuilding Co., STX Engine Co. and STX Corp. ― are certain to face delisting due to impaired capital bases and disclaimers of opinion.

Also, two construction firms ― Byucksan Engineering & Construction Co. and Tongyang Engineering & Construction Co. ― are highly likely to be delisted due to capital erosion.

JS Cable, an affiliate of LS Group, is voluntarily seeking an exit as it has been suspended for supplying substandard cables for nuclear reactors under fake certificates, which led to the shutdown of three nuclear reactors last year.

Some other companies are already subject to qualification reviews for impaired capital or irregularities by their management, such as embezzlement, according to the bourse operator.

“The number of firms facing delisting may further increase after the companies submit their business and audit reports for 2013 at the end of this month,” a KRX official said, urging extra caution by investors.

By Bae Hyun-jung and news reports 
(tellme@heraldcorp.com)

Photo News

티아라 효민 멋진 뒤태에 남심 흔들

섹시백 선발대회 몸매 뽐내는 참가자들

카자흐 女배구선수 초특급 미모, 전세계 ‘깜짝’