Enchem, a company specializing in electrolytes for secondary batteries, was found to have been flagged by the Korea Exchange (KRX) after it disclosed the audit opinion on its website before filing the audit report on the 25th. Because the audit opinion, which is crucial for investment decisions, was delivered first through a channel other than disclosure, it could pose a problem going forward.
According to the financial investment industry on the 26th, Enchem announced via a homepage pop-up notice before the regular session opened on the 25th that it had received the audit report for fiscal year 2025 from its external auditor Samil Accounting Firm and that the audit opinion was "unqualified."
As the deadline for submitting the audit report, originally the 23rd, was missed, the stock hit the lower price limit the previous day on concerns about financial weakness, and Chief Executive Officer Oh Jeong‑gang's equity was disposed of through forced selling, sending market confusion to a peak. The company posted the notice on its homepage first to ease market concerns.
However, the Korea Exchange (KRX) pointed out that the audit opinion necessary for investment decisions was disclosed first through another channel before the official filing and conveyed the relevant details to the company. The post has since been deleted.
Still, as the notice spread in the market before the stock market opened, Enchem shares surged as soon as the regular session began and finished at the upper price limit (the top of the daily price band). The audit report disclosure was made at 11:07 a.m. the same day.
An audit report opinion is information that has a significant impact on investment decisions, and the fact that it was disclosed through a separate channel prior to filing raises procedural controversy. In particular, if such early disclosures are repeated, the possibility of information distortion or abuse could be raised. In fact, Enchem received an "unqualified" audit opinion, but the report also stated that uncertainty exists regarding its ability to continue as a going concern.
The exchange plans to review whether to apply a designation for inadequate disclosure in connection with this matter. A Korea Exchange (KRX) official said, "At the time of the company's notice, materials had not been submitted through the Korea Exchange (KRX) system, and we confirmed that submission of the attachments was completed around 10 to 11 a.m., after which the disclosure was released immediately," adding, "We will review the rules and other factors before deciding whether it constitutes inadequate disclosure."