Hanchang, a KOSPI-listed company facing delisting, saw its shares drop over 90% on the first day of trading suspension.
According to the Korea Exchange, as of 1:52 PM on October 2, Hanchang's stock was trading at 108 won, down 91.39% (1,146 won) from the previous trading day.
The company is undergoing delisting procedures due to issues with its audit opinions. The auditor issued consecutive 'disclaimed' opinions for the 2023 and 2024 fiscal year audit reports.
On November 24, the Korea Exchange held a listing review committee meeting, concluding that Hanchang met the criteria for delisting based on its compliance with improvement plans, business continuity, management transparency, public interest realization, and investor protection.
However, Hanchang filed for a provisional injunction to suspend the exchange's delisting decision, which delayed the trading suspension process. On September 28, the court dismissed the injunction request, allowing the trading suspension to commence.
The trading suspension is a system that allows shareholders of a company confirmed for delisting to have a final opportunity to sell their shares. During this period, there are no price limits, which can lead to significant price volatility.
The trading suspension for Hanchang is expected to continue until October 14.
* This article has been translated by AI.
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