Osstem Implant headquarters. (Yonhap)
The Korea Exchange said Thursday that it has put Osstem Implant under review to determine whether to delist the company amid a probe into a massive embezzlement scandal.
A review committee will convene a meeting in March to make a decision on whether to allow the implant maker to continue trading or grant it a one-year grace period. Listed companies are suspended from trading and face delisting if they report embezzlement exceeding 5 percent of their equity.
Osstem Implant was forced to stop trading shares on Jan. 3 after the firm reported the massive theft that amounted to almost 108 percent of the company’s equity. A company employee managing corporate funds allegedly embezzled 245 billion won ($204 million).
Police are tracking the stolen money, and minority shareholders, who already filed for damages caused by the theft, have accused the company of posting misleading quarterly results, saying that there were potential infractions involving the firm’s directors.
Osstem Implant, the largest dental implant maker in the Asia-Pacific region, said it will present plans to improve business performance and seek resumption of trading.
A day earlier, the KRX suspended Keyang Electric Machinery from trading on the benchmark Kospi after an employee allegedly stole 24.5 billion won from the power tools maker. The theft took place over the last six years, according to police, who said the money was spent on gambling and trading cryptocurrencies.
By Choi Si-young (email@example.com