Joosung Corporation, which manufactures communication and broadcasting equipment and operates logistics businesses, has resumed stock transactions after five years.
Joosung Corporation was traded at 890 won at 9:05 a.m. on the KOSPI market on the 26th. After forming an opening price of 1,185 won, the stock price fell by 24.89% (295 won). Compared to the stock price of 4,100 won before the transaction was suspended in 2020, this is one-fifth of that level.
The Korea Exchange held a listing disclosure committee meeting the previous day to review Joosung Corporation's eligibility for listing and decided to maintain the listing. Starting that day, the suspension of stock transactions was lifted.
Joosung Corporation, then known as Converge, had its transactions suspended from March 2020 after receiving an external auditor's opinion of 'rejection.' This suspension came just about four months after transactions were resumed from being suspended from March to December 2019.
Joosung Corporation resolved its total capital loss in October 2020 and received an 'appropriate' auditor's opinion. The Korea Exchange conducted a corporate review and decided to grant Joosung Corporation a period for improvement. Decisions to delist and the appeals have been repeated, and the improvement period has been extended multiple times.
Joosung Corporation submitted documentation for its management improvement plan last month, and the Korea Exchange accepted this, allowing it to engage in stock transactions again after five years.
To enhance management transparency, Joosung Corporation appointed 5 out of 6 board members as outside directors to form its board. Three outside directors were recommended by the Korea Listed Companies Association. Additionally, it established a transparent management committee, an outside director candidate recommendation committee, and an audit committee, all composed of outside directors.
Joosung Corporation plans to periodically review for any factors that hinder management transparency through its transparent management committee, and to have an external law firm inspect management improvement activities and internal controls quarterly for three years.
The Korea Exchange has improved the delisting system to quickly expel distressed and marginal corporations. Beginning this month, the maximum improvement period that can be granted to target corporations in delisting reviews by the corporate review committee and listing disclosure committee on the KOSPI market has been reduced from two years to one year. Similarly, the maximum improvement period on the KOSDAQ market has been reduced from two years to one year and six months.