Korea Exchange (KRX) has begun compensation procedures for investors who suffered losses from the reversal of the decision to lift the designation of SCM Lifescience as an issue under management on KOSDAQ.
The exchange set a principle of paying compensation within the range of the "actual loss," and the total compensation is expected to be up to 1 billion won.
The exchange has been accepting damage compensation applications from investors related to the reassignment of SCM Lifescience as an issue under management from on the 16th to on the 31st of next month.
Investors who incurred losses in the process of buying or selling SCM Lifescience on the 17th of last month are eligible. The exchange is said to have set a principle to compensate for the actual loss amount.
So far, there have been no cases reported of individual civil suits or applications for dispute mediation with the Financial Supervisory Service.
Earlier, on the 16th of last month, the exchange lifted SCM Lifescience from the issue-under-management list, then discovered a disclosure interpretation error, reversed the decision a day later, and reassigned it on the 17th.
As investor complaints poured in, the exchange immediately formed a compensation review committee and prepared compensation standards. It also immediately activated a "market action consultative body" composed of working-level department and Head of Team leaders under the supervision of the executive in charge of disclosures, and said it would increase the use of artificial intelligence (AI) technology.