Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Korea Exchange delays decision on delisting Osstem
Osstem Implant headquarters in Seoul / Yonhap
By Lee Min-hyung
By Lee Min-hyung
The Korea Exchange decided Tuesday afternoon to delay making a decision on whether to delist scandal-tainted Osstem Implant from the tech-laden Kosdaq.
The corporate screening committee of the exchange failed to come to a conclusion on the agenda despite a discussion that lasted for hours.
“We have decided to continue reviewing the issue,” the exchange said in an announcement.
Trading of Osstem Implant shares has been suspended since early January this year after one of its employees allegedly embezzled 220 billion won ($180 million). This is the single largest embezzlement scandal in Korea.
Earlier, some industry analysts noted the possibility of a resumption in trading of the firm's stocks on the junior bourse, raising expectations among investors.
The exchange did not share further details, but committee members are known to have remained poles apart on the agenda and a series of other issues, such as the possible timeline of a resumption in trading of the firm's shares if they decide not to delist it. Those in favor of Osstem's trading resumption cited its decent earnings performance as the key reason.
Osstem has chalked up solid earnings in recent years and a set of indices displayed that the company should be on track for a resumption in business without big setbacks despite the incident. The company reported 143.6 billion won in operating profit last year, up 46.5 percent from 2020. Its sales also surged 30.6 percent during the same period.
But some other committee members reportedly voiced the need to delay making the decision until Osstem Implant shows more sincere efforts to improve its management structure and establish an internal monitoring system to ensure transparency.
The committee also had to take into consideration tens of thousands of retail investors who own 62.2 percent of Osstem's stocks as of the end of 2021. A total of 42,963 minority shareholders invested in the company during the same period.
Some of them even filed a damage compensation suit against the company and its external auditor, Induk Accounting Corp. They sought compensation for 273 million won under the calculation that Osstem's stock price will decline by half from 142,700 won, the closing price before its trading was suspended.