Unfaithful disclosures rise as penny stocks under 1,000 won face pressure

Retail investors in South Korea are facing growing anxiety as more listed companies are designated for unfaithful disclosure. Citing the Financial Supervisory Service’s disclosure system, Hankyung reported that 31 cases have been recorded this year, up 47.6% from 21 in the same period last year. Kosdaq companies accounted for 22 cases, followed by seven on the main Kospi market and two on Konex. Battery-related firm Kumyang was designated on March 5 after withdrawing a planned 450 billion won rights offering, and trading was halted for a day after its penalty points reached 17. When trading resumed, the stock fell 26.1%. Sonid, Jeju Beer, Isu Petasys and Korea Zinc also declined after disclosure-related issues. Accumulated penalty points of 15 or more can lead to management designation and possible delisting concerns. Source: hankyung.com.