No. of delisted firms from the Korea Exchange halves this year

Korean Inc. delisted from Seoul bourses have been halved from a year ago, suggesting better compliance to disclosure, accounting rules and other requirements.

According to the Korea Exchange on Wednesday, four Kospi and 15 Kosdaq firms have been kicked out so far this year and no company faces possible expulsion from now. Last year, 39 were shown out the door.

The number of companies delisted because auditors declined to sign off their latest financial report sharply fell to one (FTEnE Co.) this year from 12 last year. The number of delisted special purpose acquisition companies (SPACs) also declined to five from 13. But this year’s delistings on the secondary Kosdaq market were similar to those in the past with 20 in 2017, 13 in 2016, 18 in 2015and 15 in 2014.

Among the delisted firms this year, DECO & E Ltd. was ousted from exchange due to debt default and bankruptcy. J Technology Co. was delisted after an eligibility review on its overstated accounting records. China Hao Ran was out as it failed to meet the deadline of submitting its quarterly report after being placed at at risk of being delisted on the Kosdaq market.

J Contentree, Posco Chemical and W Games voluntarily withdrew themselves from Kosdaq to join the Kospi market. Woori Bank, Kuchen, Alvogen Korea and three others were delisted due to business integration

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