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The Korea Exchange has decided to delist ShillaJen, a pharmaceutical company that once ranked second in market capitalization on the KOSDAQ market. ShillaJen's stock trading was suspended two years ago when the management's alleged crimes surfaced. Individual investors with more than 1 trillion won in money are protesting the exchange's decision.
Reporter Im Tae-woo covered the story.
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ShillaJen, which entered the KOSDAQ market in 2016, climbed to the second place by market capitalization in less than a year.
The market capitalization rose to 8.7 trillion won on the news of developing an anticancer drug and conducting clinical trials.
However, in May 2020, allegations of breach of trust by management, including former CEO Eun-sang Moon, surfaced, and the exchange abruptly suspended trading.
[Moon Eun-sang / Former CEO of ShillaJen (April 2020): (Do you admit to the suspicion of profiting hundreds of billions of dollars using offshore companies?) … … .]
After giving ShillaJen a one-year improvement period, the exchange reviewed whether or not to list it, but ultimately decided to delist it.
The number of substances being developed as new drugs has decreased, and it is unclear whether the corporate value will be maintained with the 100 billion won in funds received after the change of the largest shareholder.
The exchange's decision is the first trial, and now the next decision is made by the KOSDAQ Market Committee, which is held within 20 business days.
Sillajen said that it cannot accept this decision, saying that major clinical trials are currently underway.
If the KOSDAQ Market Committee also decides to delist, it may lead to a legal battle.
Minority shareholders who owned more than 1 trillion won in Shillajen stock at the time of delisting are urging them to resume trading.
(Video editing: Park Soo-sun)