[Edaily Reporter Kim Hyung-il ] As five “penny stocks”—companies with share prices below 1,000 won—are set to undergo delisting proceedings, NUIN TEK CO., LTD(012340)and Castelbajac Co., Ltd.(308100)have filed for a preliminary injunction with the court to suspend the delisting decision. To protect investors, the Korea Exchange has decided to suspend the liquidation trading procedures for these two companies until there is a change in circumstances, such as a court ruling.

On the 23rd, the Korea Exchange announced that NUIN TEK CO., LTD. and Hyungji Global had filed applications with the Seoul Southern District Court for a provisional injunction to suspend the delisting decisions based on failing to meet the minimum share price requirement. The Exchange plans to provide a thorough defense against the filed injunction lawsuits.

This measure is related to the first case in which delisting proceedings were initiated due to a stock price falling below the required threshold, following the tightening of delisting requirements implemented last July. Five KOSDAQ-listed companies— TKG AIKANG(022220), NUIN TEK CO., LTD, Hyungji Global,Barunson Entertainment & Arts Corporation(035620), andi-Scream Edu Co., Ltd.(289010) —were placed on the delisting list after their stock prices remained below 1,000 won for an extended period.

These five companies were designated as “monitored stocks” on August 13 due to failing to meet the minimum share price requirement. Regulations stipulate that if a company fails to recover to a share price of 1,000 won or higher for 45 consecutive trading days within 90 trading days of being designated as a monitored stock, it becomes subject to delisting. However, four of these companies—TKG AIKANG, NUIN TEK CO., LTD., Hyungji Global, and Barunson Entertainment & Arts Corporation—continued to trade below 1,000 won even after being designated as “monitored stocks.” i-Scream Edu Co., Ltd. briefly exceeded 1,000 won last month due to a tender offer but subsequently fell back below the threshold.

When the exchange announces a delisting, the delisting typically takes effect following a liquidation trading period. However, if a company files a petition with the court for a provisional injunction to suspend the delisting, the process may be halted pending the court’s decision. For NUIN TEK CO., LTD. and Hyungji Global, which filed such petitions this time, liquidation trading will be suspended until there is a change in circumstances, such as a court ruling.

Previously, the exchange announced that it would suspend delisting procedures for JOOYONTECH and KMPHARMACEUTICAL Co.,Ltd.—which had been designated for delisting due to failing to meet market capitalization requirements—until a final ruling is issued, following the Seoul Southern District Court’s approval on the 2nd of their applications for a provisional injunction to suspend the delisting. However, the exchange maintains that the regulations governing delisting due to penny stock status remain in effect and that it intends to proceed with the delisting process.