Yoon & Yang LLC held a seminar on how corporations should respond to the overhaul of delisting regulations. With delisting grounds strengthened and procedures revamped, increasing the burden across disclosures, internal controls and governance, the focus was on pinpointing practical checkpoints.
Yoon & Yang LLC said on the 14th that it hosted a seminar titled "In-depth analysis of delisting regulation overhaul and risk management strategies" at the Yoon & Yang Training Center in ASEM Tower, Gangnam District, Seoul. About 150 people attended, including disclosure and listing-management staff from listed companies and legal and IR practitioners. Representatives from industries such as manufacturing, finance and biotech, including POSCO Holdings, Com2uS, Atinum Investment, Korea Investment Partners and GC, were present.
The seminar centered on the delisting system overhaul announced in February and proceeded by organizing the risk factors corporations may actually face and directions for response. Yoon & Yang LLC explained strategies to maintain listing, responses to substantive reviews of listing eligibility, and the management of inaccurate disclosures in three parts.
In the first session, Senior Advisor Jeong Un-su, a former deputy director general of the KOSDAQ Market Division at the Korea Exchange (KRX), explained the strengthening of delisting grounds and procedures and the introduction of the so-called "penny stock rule." Jeong said it is important to diagnose a corporation's status in advance and preemptively remove risk factors.
Next, Attorney Jeong Seong-bin covered recent regulatory trends and practical responses related to substantive reviews of listing eligibility. As procedures are streamlined while delisting grounds broaden and improvement periods shorten, the point was that corporations must move quickly from the outset of any grounds arising.
In the final session, Senior Advisor Kim Seong-tae, formerly an executive director at the KOSDAQ Market Division of the Korea Exchange (KRX), explained ways to manage the risk of inaccurate disclosures. The presentation focused on grounds for designating inaccurate disclosures and the demerit-point criteria, recurring errors during the disclosure process, and practical inspection items.
Yoon & Yang LLC believes that as the delisting regulatory framework has recently changed, corporations now need a different approach to listing-maintenance strategies. This seminar also focused on sharing response measures that practitioners can refer to immediately in line with these changes.