What Happened?: Seohee Construction Designated for Delisting Review

On September 23, 2025, the Korea Exchange designated Seohee Construction for delisting review. This decision follows allegations of embezzlement and breach of trust by company executives, a severe situation that could lead to delisting. The Exchange will decide whether to delist or grant a grace period by October 28th. If Seohee Construction submits a management improvement plan by October 21st, the Exchange will consider it before making a final decision.

Why Did This Happen?: Embezzlement Allegations and Management Transparency Issues

The core issue is the allegations of embezzlement and breach of trust by executives. This severely damages the company’s management transparency and credibility, amplifying investor anxieties. Coupled with unforeseen setbacks like the Shinansan Line collapse, it raises serious questions about the company’s stability.

What’s Next?: Stock Outlook and Investment Strategies

Trading of Seohee Construction’s stock is currently suspended. The delisting review will result in delisting, a grace period, or continued listing, each scenario having drastically different stock outlooks. Delisting would likely render the stock worthless. Currently, there’s little justification for continued investment, and drastic reduction or complete liquidation of holdings is recommended. Further investment should be avoided until a thorough review of the delisting decision and the management improvement plan is conducted.

Investor Action Plan

  • Information Gathering and Monitoring: Continuously monitor Seohee Construction’s disclosures, management improvement plan submission, and the Delisting Committee’s review results.
  • Consult with Experts: Seeking professional advice on investment strategies is recommended.
  • Objective Assessment: Make investment decisions based on objective information, avoiding emotional responses to market sentiment.