Taekwang Industrial was designated as an uncooperative disclosure corporation by the Korea Exchange. The exchange imposed 6 penalty points and a fine of 76 million won on Taekwang Industrial, citing violations related to disclosure concerning its own share disposal and exchange bond (EB) issuance.
On the 30th, the Korea Exchange's listed securities market headquarters announced that it would designate Taekwang Industrial as an uncooperative disclosure corporation due to noncompliance with disclosure obligations. If a listed company fails to faithfully fulfill its disclosure obligations under the Capital Markets Act and the disclosure regulations of the securities market, the exchange will designate the company as an uncooperative disclosure corporation after a review process.
Taekwang Industrial decided last month to dispose of its own shares and issue exchange bonds worth 320 billion won, and announced its future business and management plans earlier this month. However, the exchange determined that a press release containing this information was issued prior to the public disclosure, which violated fair disclosure.
Additionally, Truston Asset Management, the second-largest shareholder of Taekwang Industrial, filed for a temporary injunction to stop the EB issuance immediately after the company announced its plan to issue EB. Taekwang Industrial announced on the 2nd that it would temporarily suspend the related procedures. However, the fact that this matter was also publicized via a press release before disclosure contributed to the reason for noncompliance.
Meanwhile, Taekwang Industrial caused controversy by not designating a sale target when announcing the decision to dispose of its own shares and issue EB. The company later belatedly mentioned Korea Investment & Securities as the sale target, stating, "The confirmation of the disposal counterpart is in progress internally."
If the sale target is not definitively identified or if there are violations of disclosure, the exchange may review the disclosure compliance status. The exchange noted, "If any future decisions by Taekwang Industrial are found to constitute violations of disclosure, we plan to reevaluate."