KRX defers decision on SillaJen delisting

South Korea’s sole bourse operator said Thursday that it would further review possible delisting of biotechnology firm SillaJen.

SillaJen submitted its business normalization scheme to the bourse operator last month. The KRX’s Kosdaq Market Committee was to decide whether to lift the company’s trading suspension or delist it from the nation’s tech-heavy Kosdaq market. Officials said the committee would resume discussion without setting a date, but that it would be sometime after SillaJen shareholders’ general meeting, which is slated for Sept. 7.

“SillaJen has business transparency issues, but the firm has planned to raise an agenda to change executives in the upcoming shareholders’ general meeting,” said an official from the Korea Exchange. “Considering that fact, we’ve decided to watch over the general meeting’s result and determine the firm’s fate.”

The local stock market operator has been reviewing SillaJen’s qualification as a listed company, after a probe launched to investigate alleged insider trading involving its former CEO Moon Eun-sang. It also halted the biotech company’s stock trading since May 4.

The former CEO and key executives were indicted over charges of embezzlement and breach of trust. After Moon‘s arrest on May 12, he stepped down from his position the following month.

Prior to the more than five-hour meeting by Kosdaq Market Committee, some minority shareholders of the biotech firm gathered in front of Korea Exchange’s Seoul office in Yeouido. They called the sole bourse operator to lift the company’s trading suspension.

SillaJen had nearly 168,800 small-scale shareholders as of the end of last year. SillaJen stock, which once traded as high as 152,300 won ($128.36), has tanked to 12,100 won, dragging down its market value at 866.6 billion won.

By Jie Ye-eun (yeeun@heraldcorp.com)