SSANGBANGWOOL said on the 12th that it would pursue a request for a suspension of the effect of the delisting decision made by the Korea Exchange. The previous day, the Korea Exchange confirmed the final delisting of SSANGBANGWOOL, which had been suspended from trading due to allegations of embezzlement and breach of trust by the management. This decision was made to ensure the normal operation of SSANGBANGWOOL and protect investors.
The SSANGBANGWOOL side expressed deep regret over the Korea Exchange's delisting decision, stating, "It is very unfortunate that the company is being dismissed as a wicked corporation due to the political issue of 'remittances to North Korea.'" SSANGBANGWOOL was involved in the 'North Korean remittance incident,' where former Chairman Kim Sung-tae allegedly transferred $8 million to North Korea at the request of Lee Hwa-young, the former vice governor of Gyeonggi Province.
SSANGBANGWOOL plans to question the legality of the delisting decision through court judgment and seek additional countermeasures. A SSANGBANGWOOL official noted, "We have complied with all the requirements presented by the exchange for improving our financial structure and ensuring management transparency," adding, "We are regretful that such efforts have been ignored, resulting in the worst conclusion of delisting."
They added, "The delisting decision is not just a problem for the company, but it also causes significant damage to countless minority shareholders," and stated, "We will use all means, including legal procedures, to fully clarify the unfairness of the delisting."
SSANGBANGWOOL's stock trading was suspended on July 7, 2023, due to allegations of embezzlement and breach of trust against former Chairman Kim. The Korea Exchange decided on the delisting on September 15 of the same year after a review by the Corporate Review Committee. In response, SSANGBANGWOOL filed an objection, but the Korea Exchange deemed the implementation of the improvement plan to be insufficient and announced the previous day, "We have decided that the company meets the criteria for delisting after considering the continuity of the corporation, management transparency, and other public interests and investor protection in a comprehensive manner."
Meanwhile, the delisting procedure for Kanglim, the major shareholder of SSANGBANGWOOL, has been temporarily suspended. On the 10th, the Korea Exchange announced that the reason for the delisting of the securities had occurred, providing guidance on the delisting and negotiation trading. Currently, Kanglim has filed a request for a suspension of the effect regarding this matter.