Korea Exchange (KRX) decided to delist Kumyang, whose stock trading was suspended after an outside auditor issued a disclaimer of opinion.
The exchange said it made the decision at a listing disclosure committee meeting for the main board on the 20th.
The exchange plans to give notice of delisting through the 26th, allow a seven-trading-day liquidation session for Kumyang, and then delist the company. However, Kumyang pushed back against the decision and signaled it would file for an injunction to suspend its effect.
Ryu Gwang-ji, Kumyang's chair, said at the regular shareholders meeting in March that "if the exchange decides to delist Kumyang, we will respond proactively, including by filing for an injunction to suspend the effect." If Kumyang files for an injunction, liquidation trading will be put on hold until the court rules.
Kumyang's stock trading was suspended on Mar. 24 last year after an external accounting firm questioned its ability to continue as a going concern and issued a disclaimer of opinion.