South Korea’s Kosdaq Market Committee on Tuesday scrapped Korea Exchange’s plan to delist local pharmaceuticals company Kyung Nam Pharm from the second-tier Kosdaq market, instead giving the company a one-year grace period to improve transparency.
A panel led by the Korea Exchange, the nation’s sole market operator, last week suggested Kyung Nam Pharm be pulled from the Kosdaq market over accounting errors that occurred between financial years 2008 and 2013.
Due to the errors, revenue of 5 billion won ($4.4 million) was misstated, according to KRX.
Milestone KN Fund is the biggest shareholder of Kyung Nam Pharm, holding 12.48 percent of shares.
(Kyung Nam Pharm.)
The initial announcement had spurred questions over whether the panel’s decision was fair, drawing comparison to the case of Samsung BioLogics where the same panel agreed to normalize stock transactions of Samsung BioLogics in late December.
The Securities and Futures Commission suspended trading of the bio firm’s shares for a month due to accounting fraud and the company’s chief executive was levied a fine of 16 million won.
By The Korea Herald staff (email@example.com