Geumyang, a Korean secondary battery-themed stock facing delisting, postponed its 405 billion won third-party capital increase payment date to September 30, marking the 9th delay in approximately one year. The original payment date was June 30. The delay undermines the company's core argument for business normalization presented to the court, which granted a two-month extension with a materials submission deadline at the end of August. The capital increase involves Saudi Arabian investor Skive Trading & Investment. Korea Exchange decided on Geumyang's delisting due to auditor's disclaimer of opinion for the 2024 and 2025 fiscal years, and the company appealed to the court citing ongoing investment attraction and potential for operational recovery.
Court Deadline and Capital Increase Timeline
The court held an initial hearing on May 24 where Geumyang argued it could obtain a qualified audit opinion through re-audit once investment attraction is finalized. The court granted both Korea Exchange and Geumyang two months to submit additional materials, setting the deadline at the end of August. The capital increase payment date of September 30 falls more than one month after the court's required submission deadline. According to the financial industry and Financial Supervisory Service's electronic disclosure system on May 26, Geumyang changed the payment date for the 405 billion won third-party allocation capital increase targeting Saudi Arabian investment firm Skive Trading & Investment to September 30.
Debt Pressure and Operational Challenges
Geumyang's financial difficulties intensified during construction of a cylindrical battery factory in Gijang, Busan, with the factory site transferred to auction. Busan Bank's debt collection and garnishment order for approximately 137.9 billion won was approved by the court. The company recently postponed new equipment investment plans, including expansion of 46-series and 21700 production facilities at the Dongbusan E-PARK secondary battery factory. If the court does not grant the stay of execution, Korea Exchange's delisting decision will take effect and liquidation trading procedures will begin immediately.
Retail Shareholder Impact
Geumyang has approximately 240,000 small shareholders. Many retail investors who entered near peak prices during the secondary battery theme boom already carry significant valuation losses. The small shareholders' association initially considered criminal complaints and damage compensation lawsuits against the company but decided to wait until the court deadline. Oh Bong-ok, a Seoul Digital University professor representing the shareholders' association, stated to Edaily that "the shareholders' association leadership decided to wait until the grace period of August 24." A Geumyang official declined to comment on the current status of materials submission and capital increase payment schedule, stating "we cannot disclose to the media."
FAQ
Why did Geumyang delay the capital increase payment date to September 30?
Geumyang postponed the 405 billion won capital increase payment date from June 30 to September 30, marking the 9th delay in approximately one year. The company did not provide a public explanation for the postponement.
What is the court's deadline for Geumyang's additional materials?
The court granted Geumyang and Korea Exchange two months to submit additional materials following the May 24 hearing, setting the deadline at the end of August. The capital increase payment date of September 30 falls more than one month after this court-required deadline.
