Investors to the secondary Kosdaq market animated on a series of government incentive and deregulation measures are warned of discretion amid surge in stocks headed to the blacklist on the possibility of disqualification and delisting.
The country’s stock operator KRX as of Wednesday had 34 stocks on the watch list, up more than 25 percent from a year ago due to spike in Kodaq members. Of the blacklisted stocks, 28 are listed on the secondary market.
Kospi members are Samkwang Glass Co., Hansol PNS Co. and Alvogen Korea Co.
Included in the 28 from the Kosdaq are Hangnam Chinaware Inc., Hansol Inticube Co., C&S Asset Management Co., Moda Inc. and Raygen Co.
Companies are placed under the watch list when their debts exceed paid-in capital by 50 percent, receive unfavorable opinions from auditors, perform badly business-wise, or file for bankruptcy. Between 2012 and 2016, 21 companies or 40.4 percent of total 52 firms on the watch list were kicked out of the market, according to the KRX. It took an average of 275 days from joining the doom list to delisting.
As of now, 16 stocks among the 34 blacklisted firms have been suspended. The other 18 stocks have shed massive losses in value. Kospi-listed Samkwang Glass that has been named as an administrative issue after receiving a “qualified” opinion for its audit report last year saw its stock nosedive 30.2 percent.
By Park Yoon-gu and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]