With Kumyang pushed to the brink of delisting, an extra-large blow dubbed the "Gijang plant auction" has been added. As even the cylindrical battery production base that small shareholders saw as the last bulwark for a comeback has entered forced auction proceedings, Kumyang's very existence has been shaken.
According to the Financial Supervisory Service's electronic disclosure system on the 17th, Kumyang disclosed that on the 16th it was notified by the Busan District Court Dongbu Branch of a decision to commence a forced auction of real estate.
The creditor is Dongbu Corporation. Dongbu Corporation applied for a forced auction targeting the plant site in Gijang County, Busan, owned by Kumyang to recover 33,228,860,000 won in unpaid construction fees and delay damages on 33,144,560,000 won of that amount. With the Busan District Court Dongbu Branch accepting the application and deciding to commence the auction process, the real estate held by Kumyang has entered a full-fledged sale procedure.
Kumyang initially embarked in 2023 on completing a secondary battery manufacturing plant in Gijang to produce cylindrical batteries. It was then designated an unfaithful disclosure entity after deciding in 2024 on a shareholder-allotted paid-in capital increase of 450 billion won to raise construction funds and then withdrawing it.
On top of that, the company received a "disclaimer of opinion" from its external auditor last year, triggering grounds for delisting. Kumyang said it would receive a third-party allotment paid-in capital increase of 405 billion won to improve its financial structure and complete the Gijang plant, but that, too, has been postponed multiple times.
Kumyang said it would issue new shares to a Saudi Arabian company, Skyve Trading & Investment, to raise 405 billion won, but the payment of funds has been postponed seven times as of recently.
Earlier, when the fund payment was delayed again last month, Kumyang said in a statement, "If we can complete the Gijang plant, we will gladly accept any investment method," adding, "The largest shareholder will also put everything aside for the completion of the Gijang plant."
Meanwhile, Kumyang plans to hold its regular shareholders meeting on the 31st. A week before the meeting, it must submit its business report and audit report, and if it receives a disclaimer of opinion for the second consecutive year this year, it will proceed with delisting procedures.
A Korea Exchange (KRX) official said, "If Kumyang receives a disclaimer of opinion again this year, or fails to submit its business report within the statutory deadline at all, it will undergo a delisting review."
Regarding measures for the commencement of the forced auction of real estate, Kumyang said, "It is difficult to speak about the current situation."