By Kim Rahn
Lotte Tour and RNL Bio will be delisted from the stock market due to problems with their audit statements.
The Korea Exchange (KRX) said Tuesday that a total of 29 companies including the two — eight traded on the main bourse and 21 on the tech-heavy KOSDAQ market — would exit from the market.
The decision follows reviews on listed companies that closed their accounts in December.
On the main bourse, the number of delisted firms rose from last year's two to eight this year amid the protracted economic slump.
Lotte Tour was forced to exit after it received a declaimer from an auditor — a declaimer of opinion is provided when an auditor cannot obtain appropriate audit evidence and thus is unable to express an opinion on the financial statements. This is one of the reasons for delisting under the Stock Exchange Law.
The company filed for court receivership last month after incurring huge losses from the troubled urban development project in Yongsan. Its aggregate capital was 50.8 billion won in December, while having 131.4 billion won of debt and posting 36.2 billion won in net losses last year.
RNL Bio, a stem cell research company, also faces delisting because of a declaimer of opinion from its auditor. It also saw more than half of its paid-in capital dry up. Earlier this year, the firm was also involved in an allegation that it had smuggled out stem cells to hospitals in China and Japan.
Lotte Tour and RNL Bio, along with electrical equipment maker Glostech, have raised objections over the market exit, so the KRX's committee will review these and make a final decisions soon.
Dahaam e-Tec, Hanil Engineering and Construction, and three shipping investment firms — Korea Pacific 05, 06, and 07 — will be delisted within two weeks as they didn't raise objection.
Separately from the eight firms, Woongjin Holdings, Korea Line and Shinil Engineering are also under review on whether they can obtain fresh funding.
On the secondary market of KOSDAQ, 21 firms face exit.
Jau Tour was included, as the tour agency's auditor provided a declaimer. It also raised objection to the exit decision, so a review committee will be held soon.
In the meantime, as RNL Bio faces delisting, the KRX will exclude the company from the KOSPI 200, the index consisting of 200 big companies of the main bourse. It instead plans to include Dongwon F&B today.