This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:25 p.m. on June 9, 2026.
KOSDAQ-listed Cellfie Global put out the immediate fire ahead of delisting. A claim that it was unjust for the Korea Exchange (KRX) to decide on delisting without granting a correction period was accepted by the court.
However, several procedures, including the main lawsuit, still remain for trading to resume. That means Cellfie Global's trading halt could be prolonged by years of legal battles. But some in the industry say the Korea Exchange (KRX) may decide to grant a correction period or resume trading rather than wage a lawsuit.
According to the capital market industry on the 9th, the Seoul Southern District Court on the 5th granted an injunction to suspend the effect of the delisting decision filed by Cellfie Global and its largest shareholder, the shareholders' alliance, against the Korea Exchange (KRX). The case was handled by consolidating separate injunction requests filed by Cellfie Global and the current largest shareholder, the shareholders' alliance.
Cellfie Global became subject to substantive review for delisting due to a second consecutive adverse audit opinion after receiving a disclaimer of opinion in its 2023 audit report. Although the audit opinion later changed to "unqualified," seemingly averting the delisting crisis, delisting grounds were not resolved after embezzlement and breach of trust allegations against former management were confirmed. In April last year, the Korea Exchange (KRX) finalized delisting for Cellfie Global without granting a separate correction period, saying earnings improvement prospects were uncertain and opaque fund execution by management had been identified.
In response, Cellfie Global and the shareholders' alliance pushed back. In particular, as the shareholders' alliance was then locked in a management control dispute with corporate raider forces that had a grip on Cellfie Global, its position was that if a correction period had been granted, normalization of management would have been possible. The shareholders' alliance has now succeeded in securing management control of Cellfie Global.
On Cellfie Global's claim that deciding on delisting without granting a correction period was an abuse of authority, the court sided with the company. The gist was that the Korea Exchange (KRX) should have granted a correction period to assess whether management could be normalized.
The court said, "The delisting decision made without granting even a minimum correction period to allow the company to improve management transparency on its own constitutes an abuse of discretion and can be considered invalid," adding, "It should have considered whether the shareholders' alliance, then Cellfie Global's largest shareholder, could secure management control and stabilize management, but the Korea Exchange (KRX) did not sufficiently examine that possibility."
With the injunction to suspend the effect of the delisting decision granted, Cellfie Global has been able to put out the immediate fire to prevent delisting. However, procedures still remain, including the main lawsuit, for trading to resume. Current management at Cellfie Global also filed a main lawsuit earlier this year seeking to invalidate the delisting decision.
The issue is that if the main lawsuit proceeds, the trading halt could be prolonged. Considering it took about a year for the injunction ruling to come out, it is expected to take years for the main lawsuit to conclude.
However, some in the industry say there is a chance a "conclusion" could come faster than expected. That is because, with the injunction granted, Cellfie Global's delisting is again subject to the Korea Exchange's (KRX) judgment.
Previously, KOSDAQ-listed Bucket Studio also underwent another substantive review after the court accepted an injunction to suspend the effect of a delisting decision on the grounds that no correction period had been granted. The Korea Exchange (KRX) later granted Bucket Studio a nine-month correction period through the Corporate Review Committee.
Cellfie Global is expected to be reviewed by the KOSDAQ Market Committee, a second-instance level, as its objection to the delisting decision was recognized through the injunction request. Regardless of whether the main lawsuit proceeds, the KOSDAQ Market Committee will make the final decision on Cellfie Global's delisting or the granting of a correction period.
A capital market industry official said, "Since the disclaimer of opinion and management opacity that were grounds for delisting have now been resolved, there appears to be a fair chance that trading resumption will be decided quickly."