What Happened? The SysWorks Trading Suspension Explained
On September 22, 2025, SysWorks announced that its delisting process has been suspended due to an injunction filed against the delisting decision. The delisting, scheduled for September 19th, has been temporarily postponed.
Why the Suspension? Deteriorating Fundamentals and Legal Battles
SysWorks is grappling with severe capital impairment (negative KRW 20.5 trillion), and its core business struggles led to an operating loss of KRW 104.3 billion in the first half of 2025. Restructuring attempts have repeatedly failed, and the company has received three consecutive audit disclaimers. This dire situation led to the delisting decision, which SysWorks is now challenging legally.
What’s Next? Uncertainty and Opportunity Intertwined
The trading suspension buys SysWorks some time, but the underlying problems remain. The situation could worsen depending on the court’s final decision. However, if the court rules in SysWorks’ favor or if the restructuring process proves successful, there might be a chance for a turnaround.
- Positive aspects: Temporary reprieve from delisting, time gained for further action
- Negative aspects: Continuing deterioration of fundamentals, ongoing uncertainty
What Should Investors Do? Proceed with Extreme Caution
Investing in SysWorks carries extremely high risks. Avoid impulsive decisions and closely monitor the court’s decision and the progress of the restructuring process. Existing investors should consider exit strategies, and potential new investors should proceed with extreme caution.