[Edaily Reporter Kwon Oh Seok ] Shareholder anxiety is reaching a fever pitch as Kumyang(001570), which stands on the brink of delisting, has failed to submit even its semi-annual report ahead of the expiration of the grace period granted by the court. With shareholders unable to verify the company’s exact financial status, tensions are escalating, as reports indicate that the company has even taken legal action against some of them.

According to the financial investment industry on the 26th, both Kumyang and the Korea Exchange (KRX) have submitted documents to the court multiple times regarding whether the company should remain listed. Previously, the KRX decided to delist Kumyang based on the auditors’ adverse opinions for the 2024 and 2025 fiscal years. In response, Kumyang filed a lawsuit seeking a preliminary injunction against delisting and requested the court’s ruling by highlighting the progress of its investment fundraising efforts and the possibility of normalizing its management.
The Seoul Southern District Court held its first hearing on June 24, requesting that both the Korea Exchange and Kumyang submit additional materials and granting a three-month grace period. This followed Kumyang’s appeal that it could maintain its listing by “obtaining an unqualified audit opinion through a re-audit once the fundraising is completed.” The court is expected to set a deadline for submitting materials by the end of this month and issue a final ruling one month later.
The market views the “payment for the third-party private placement” as Kumyang’s top priority for overcoming this liquidity crisis and securing the resumption of trading and the maintenance of its listing; however, this remains unlikely. Kumyang has postponed the payment deadline for a 405 billion won capital increase targeting the Saudi Arabian investment firm “Skyve Trading & Investment” from the originally scheduled date of June 30 to September 30.
If Kumyang successfully receives the funds from the rights offering, it will be able to at least partially resolve its immediate financial difficulties, including the repayment of loans, the settlement of current liabilities, and investment in new facilities. However, having postponed the payment nine times over the past year or so, the company has already lost the market’s trust.
Even though the company’s fate hangs by a thread, Kumyang’s management has shut the door on the market. Kumyang failed to submit its semi-annual report by the statutory deadline (August 14). Regular reports, which listed companies are required to disclose periodically, serve as the last line of defense for informing the market and shareholders about the company’s viability. However, by failing to submit even this report, investors have been completely cut off from understanding the company’s current financial situation and structure—including its exact debt-to-equity ratio, cash flow, and the severity of its liquidity crisis.
Instead of communicating with shareholders, the company has opted for a hardline response, fueling yet another controversy. According to the financial investment industry, Kumyang is reportedly filing criminal complaints against five key figures from a shareholder coalition who have recently voiced criticism. When Edaily asked about plans to submit the semi-annual report, a Kumyang official refused to comment, stating, “We have no separate position to convey to the media.”
If the court does not grant a provisional injunction to suspend the decision, the Korea Exchange’s delisting decision will take effect, and liquidation trading procedures will begin immediately. At that point, retail investors will suffer the greatest losses. Kumyang has approximately 240,000 small shareholders, and many retail investors who jumped in near the peak during the past “lithium-ion battery theme boom” are already shouldering significant losses.
The Shareholders’ Alliance is maintaining a cautious stance, stating that it will first monitor the court’s final ruling and whether the company makes the required capital payment. An official from the Kumyang Small Shareholders’ Alliance said, “For now, we are closely monitoring the situation while maintaining the stance that preventing delisting and restoring the company to normal operations is our top priority.”