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| Korea Exchange Headquarters. (Photo Credit: Korea Exchange) |
[Alpha Biz= Reporter Kim Jisun] The Korea Exchange (KRX) announced on November 22 that it has issued a preliminary notice to designate Korea Zinc as a non-compliant disclosure entity.
According to the KRX, this decision follows the company's reversal of its public disclosure under the KOSPI market disclosure regulations. Korea Zinc has until December 3 to submit an objection.
On October 30, Korea Zinc announced plans to issue 3,732,650 common shares, equivalent to 20% of its outstanding shares, at 6.7 million KRW per share through a public offering, aiming to raise 2.5 trillion KRW.
This announcement came shortly after the company repurchased shares at 8.9 million KRW per share to enhance shareholder value. The sudden capital increase plan caused stock price volatility and drew significant criticism from the market. The Financial Supervisory Service also expressed concerns, leading Korea Zinc to cancel the rights offering just a week later, on November 13.
If designated as a non-compliant disclosure entity, Korea Zinc could face penalties such as demerit points and disclosure violation fines. Accumulated demerit points could result in the company being categorized as an underwatch entity. Repeated violations after such designation could make it subject to a delisting review.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
