Table of Contents
- Is there a possibility of a turnaround for Kim Yang, facing delisting?
- Submission of an appeal against delisting to the Korea Exchange
- Post-sale leasing strategy for Dream Factory... liquidity securing measures
- Repeated inaccurate disclosures, regaining trust is crucial
- The impact on the local industry is also considerable
- The fate of Kim Yang depends on the exchange's decision and execution capability
Is there a possibility of a turnaround for Kim Yang, facing delisting?
As Kim Yang, which is developing the secondary battery production complex 'Dream Factory' in Gijang-gun, Busan, faces the risk of delisting, local economic and investor attention is focused.
Kim Yang has been noted as a key company that will lead changes in the local industry through this project, so this situation is expected to have a larger impact beyond just the delisting issue.
Submission of an appeal against delisting to the Korea Exchange
According to the announcement from the Korea Exchange, Kim Yang submitted an appeal against delisting on April 10 due to a 'denial of audit opinion' received in the 2024 fiscal year's audit report, which triggered the reason for delisting.
After this application is submitted, the exchange is expected to summon the listing disclosure committee within 20 business days. The committee will make a final decision on the delisting within three days after the submission of the application. If the committee determines that Kim Yang's improvement plan is valid, it may provide an opportunity to improve for a certain period of time. The outcome of this process will determine whether the listing is maintained or delisted.
Post-sale leasing strategy for Dream Factory... liquidity securing measures
Kim Yang announced plans to secure funds through a leasing strategy after selling the secondary battery factory, 'Gijang Dream Factory', located in Jang-an-eup, Gijang-gun, during the recent regular shareholders' meeting. A total of 700 billion won has been invested in this project, with the current progress rate reaching about 90%, and major equipment has been transported up to the 21st floor.
Currently, construction has been halted due to funding issues, but Kim Yang expressed a positive outlook, stating that completion may be possible within 2 to 3 months. Additionally, it is strategizing to secure liquidity through asset securitization and receive an 'appropriate' audit opinion through a re-audit. These measures are expected to play a critical role in helping Kim Yang recover its financial soundness.
Repeated inaccurate disclosures, regaining trust is crucial
In September last year, Kim Yang announced a plan for a capital increase of 450 billion won, but was designated as an inaccurate disclosure company when it withdrew this plan in January 2025. Additionally, in 2023, it was classified as an inaccurate disclosure company again due to suspicions of overstating performance in a Mongolian mine, resulting in significant damage to its credibility.
Even if this appeal and improvement plan are approved, regaining the trust of investors is expected to be the biggest challenge. Kim Yang needs to make efforts to regain investor confidence through reliable management in the future.
The impact on the local industry is also considerable
Kim Yang is noted as a mid-sized company that will lead innovation in the secondary battery industry in the Busan region. The Busan city government is cooperating with Kim Yang to establish the Dongbusan E-PARK industrial complex and is developing plans to foster a secondary battery cluster. To this end, various support policies are being pursued, including designating the Vice Mayor as a dedicated officer. These efforts are expected to have a positive impact on Busan's economy and industrial ecosystem.
If Kim Yang is delisted, it is expected to have a serious impact on regional industrial policy. On the other hand, if the improvement plan is successfully implemented, it could lead to positive results in both maintaining the listing and revitalizing the industrial complex.
The fate of Kim Yang depends on the exchange's decision and execution capability
Kim Yang has chosen to secure funds through the sale of Dream Factory and to take the last measure for maintaining listing through re-audit and implementing the improvement plan.
The key now lies in the decision of the exchange and Kim Yang's execution ability.
Investors should pay attention to the risk of delisting and the issue of regaining trust, and the local economy is at a point where it must watch whether Kim Yang will lead innovation in Busan manufacturing or fail.
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