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Bourse operator to review normalization plan of SillaJen at risk of delisting

A SillaJen stock investor shaves hair in show of protest, urging the Korea Exchange to resume SillaJen's trading on the stock bourse in front of Korea Exchange's Seoul office Friday. (Yonhap)
A SillaJen stock investor shaves hair in show of protest, urging the Korea Exchange to resume SillaJen's trading on the stock bourse in front of Korea Exchange's Seoul office Friday. (Yonhap)

South Korean bourse operator Korea Exchange said Friday that it will review a business normalization plan by bio tech firm SillaJen to decide whether to delist it.

The KRX has been reviewing the company's listing, after the company's chief executive and key management were indicted over charges of embezzlement and breach of trust.

SillaJen submitted its business normalization scheme to the bourse operator, and the KRX will have to decide whether to accept it by Aug. 4.

In the case of granting a grace period, the bourse operator is also to decide whether it will lift the company's trading suspension. Trading of SillaJen stocks has been suspended on the tech-laden Kosdaq since May 4.

SillaJen has come under fire after some of its executives sold stocks ahead of its regulatory filing in August 2019 that its key product Pexa-Vec failed clinical tests.

Since its market debut on Dec. 6, 2016, SillaJen has rallied to 152,300 won on Nov. 21, 2017 from 9,050 won on Feb. 20, 2017.

SillaJen finished at 12,100 won on the day of suspension, lower than its IPO price of 15,000 won per share. (Yonhap)

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