Iljeong Industries, a manufacturer and seller of textile products and synthetic leather, saw its shares drop more than 25% on the first day of trading suspension.
As of 1:55 PM on June 19, the Korea Exchange reported that Iljeong Industries' stock was trading at 582 won, down 197 won (25.29%) from the previous trading day.
The company entered trading suspension on June 15 due to failing to meet the market capitalization requirements for listing. Trading suspension provides investors in companies facing delisting with a final opportunity to sell their shares. Typically, there are no price limits during this period, leading to increased volatility in stock prices.
Earlier this year, financial authorities tightened the market capitalization criteria for maintaining a listing, effective from January. Companies listed on the KOSPI must maintain a market capitalization of at least 20 billion won, while KOSDAQ-listed companies must have at least 15 billion won. Starting July 1, the requirements for maintaining a listing will be further strengthened.
Iljeong Industries was designated as a management issue in March after its market capitalization fell below 20 billion won for 30 consecutive trading days. To be removed from management issue status, the company needed to maintain a market capitalization above 20 billion won for 10 consecutive trading days and a cumulative total of over 30 trading days, which it failed to achieve.
The trading suspension will continue until June 29, with the company expected to be delisted on June 30.
* This article has been translated by AI.
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