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Firms facing exit from Seoul bourse rise in 2013

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(Globalpost/GlobalPost)

The number of companies facing delisting from the South Korean stock market has increased in 2013 from the previous year amid a protracted economic slump, the bourse operator said Tuesday.

According to the Korea Exchange (KRX), 29 firms which close their books in December were found to have negative capital or to have received a disclaimer of opinion from auditors on their financial statements, compared to 22 firms tallied a year earlier.

A disclaimer of opinion is issued when an auditor has not been able to obtain appropriate audit evidence and is unable to express an opinion on the company's financial statements.

Of the total, eight firms are listed on the main bourse while the remaining companies are traded on the tech-focused KOSDAQ market, according to the KRX.

The firms to be delisted from the main bourse include local builder Hanil Engineering & Construction Co. and electronics equipment maker Daham e-Tec Co., which are scheduled to be delisted on April 16.

The KRX will also decide whether to delist Lotte Tour Development Co., Glostech Co., and RNL Bio Co from the main bourse after reviewing their letters of objection.

Meanwhile, firms to be delisted from the secondary market include Human & Technologies Corp., Samwoo EMC Co., and EDD Company Co., while other firms may remain on the market if the KRX accepts their objections.

http://www.globalpost.com/dispatch/news/asianet/130403/firms-facing-exit-seoul-bourse-rise-2013