À̹ÌÁö È®´ë Fusion Data Co., Smark Co. and Deco & E Co. traded on South Korea¡¯s secondary Korea Securities Dealers Automated Quotation (Kosdaq) market are on the brink of delisting after they have failed to submit first-half earnings reports that were due last week.
According to South Korea¡¯s sole stock exchange operator Korea Exchange (KRX) on Friday, FusionData and Smark will be immediately kicked out from the Kosdaq if they fail to submit respective first-half earnings reports by August 26.
Kosdaq-listed companies under administrative issue whose liabilities exceed capital by 50 percent immediately face delisting if they fail to turn in a half-year earnings report within 10 days after an initial deadline. The deadline for first-half reports for companies whose fiscal year ends in December was August 14.
Deco & E Co. is another Kosdaq-traded company in delisting danger as it turned in a review report last week instead of an audit report. The company must submit an audit report to KRX by August 26 if it wants to avoid settlement trading.
It the three Kosdaq members – FusionData, Smark, and Deco & E – fail to submit their first-half earnings reports that include audit reports by next Monday, they lose their Kosdaq membership. Under regulation, Kosdaq-listed companies with liabilities exceeding capital by 50 percent, less-than-1 billion won ($827,475) equity, or financial statements receiving a disclaimer opinion from an auditor must turn in their first-half earnings reports within 10 days after the initial deadline to avoid immediate delisting procedure.
FusionData fell under administrative issue in April after its capital was eroded and its equity capital fell below 1 billion won. Smark and Deco & E also fell under the same issue in August last year, respectively, due to capital erosion and disclaimer opinion for their first-half financial statement.
Shares of FusionData closed 29.81 percent higher at 344 won on the junior bourse on Friday. Stock trading of Smark and Deco & E has been suspended.
Meanwhile, KRX data showed that 35 companies listed on the Kosdaq market fell under administrative issue this year, up 52 percent from last year. Seven companies, including Kolon Life Science, MiraeSCI Co., DST Co., and Aibit Co., fell under administrative issue on Friday after receiving disclaimer opinions from auditors for their first-half financial statements. Their stocks are, however, traded on the market.
By Chung Seung-hwan and Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]