1. Kodako’s Delisting Appeal: What Happened?
Kodako received a delisting decision on July 21, 2025, and subsequently filed an appeal on August 11th. The Korea Exchange will decide whether to delist or grant a grace period by September 9th through the KOSDAQ Market Committee.
2. Why Did This Happen?
Despite undergoing rehabilitation proceedings, Kodako still has a vulnerable financial structure with high debt-to-equity ratio and net loss on a consolidated basis. The possibility of a downturn in the automobile industry and rising raw material prices are also factors exacerbating Kodako’s business environment. While the operating profit turning to black in Q1 is positive, it’s considered insufficient to resolve the reasons for delisting.
3. What’s Next?
- If trading resumes: There is a possibility of a short-term stock price increase, but stock price volatility is expected to be high depending on whether the financial structure improves and business normalization occurs.
- If delisted: Investors will suffer significant losses, and Kodako may experience difficulties in raising capital and face restrictions on business operations.
Macroeconomic conditions, such as exchange rates, interest rates, and the automobile industry’s performance, can also affect Kodako’s future outlook.
4. What Should Investors Do?
Currently, investing in Kodako carries very high risks. It is advisable to hold off on investments until the KOSDAQ Market Committee’s decision on September 9th and carefully decide on investment after the announcement of the results.
- If delisted: Completely withdraw investments and consider ways to minimize losses.
- If trading resumes: Carefully monitor efforts to improve financial structure and normalize business operations.