(020760) ILJIN DISPLAY Improvement Period: A Deep Dive into Delisting Risk & Investor Strategy

The recent decision to grant ILJIN DISPLAY CO.,LTD. an improvement period by the Korea Exchange Corporate Review Committee has placed the company at a critical crossroads. For investors, this news is a double-edged sword, representing both a sliver of hope for recovery and a stark reminder of the looming ILJIN DISPLAY delisting risk. With trading suspended and fundamentals deteriorating, navigating this uncertainty requires a clear-eyed analysis of the facts and a prudent action plan.

This comprehensive guide will dissect the implications of the ILJIN DISPLAY improvement period, explore the severe financial challenges the company faces, and provide a strategic roadmap for current and potential investors. We will delve into the specific conditions of the trading suspension, the factors influencing its potential delisting, and what to monitor over the coming year.

Understanding the ILJIN DISPLAY Improvement Period

On November 4, 2025, the Korea Exchange’s KOSPI Market Corporate Review Committee opted not to immediately delist ILJIN DISPLAY (Market Cap: KRW 46.5 billion). Instead, it granted the company a one-year grace period to address the issues threatening its listing eligibility. This is a critical lifeline, but one with strict conditions.

• •Improvement Period Duration: One full year, concluding on November 4, 2026.
• •Trading Status: The ILJIN DISPLAY trading suspension will remain in effect throughout this period.
• •Objective: The company must implement a comprehensive improvement plan to resolve concerns about its financial stability, going concern status, and management transparency.

At the end of this period, the Exchange will re-evaluate the company. Success could lead to the resumption of trading; failure will almost certainly result in delisting. Investors can review the full details in the Official Disclosure on DART (Source).

A Deep Dive into ILJIN DISPLAY’s Financial Crisis

The decision to review ILJIN DISPLAY’s listing eligibility was not arbitrary. It stemmed from a profound and worsening deterioration of its core business fundamentals, raising significant doubts about its ability to continue as a going concern. A look at the H1 2025 financials paints a grim picture.

Collapsing Revenue and Profitability

Revenue in the first half of 2025 fell to KRW 40,256 million, with both the Touch Screen Panel (DS) and Sapphire Wafer (AD) divisions experiencing declines. More alarmingly, the company swung from a profit to an operating loss of KRW 1,791 million and a net loss of KRW 4,206 million, indicating that its core operations are no longer sustainable in their current form.

Precarious Financial Health and High Delisting Risk

The balance sheet reveals several red flags that directly contribute to the high ILJIN DISPLAY delisting risk:

• •High Leverage: The debt-to-equity ratio has climbed to 153.25%, a worrying figure that signifies a heavy reliance on borrowed funds.
• •Liquidity Squeeze: With a current ratio below 100%, the company’s short-term assets are insufficient to cover its short-term liabilities, posing an immediate cash flow risk.
• •Convertible Bond Overhang: Over KRW 10.1 billion in convertible bonds could lead to share dilution and further financial strain if converted.

While the improvement period offers a chance for a structured turnaround, the underlying financial sickness is severe. Success is far from guaranteed and will require drastic operational and financial restructuring.

Strategic Action Plan for Investors

Given the high stakes and prolonged ILJIN DISPLAY trading suspension, investors must adopt a cautious and highly informed approach. Hope is not a strategy; diligence and realism are paramount.

Key Monitoring Points During the Improvement Period

Your focus should be on tangible evidence of a successful turnaround, not just promises. Monitor the following closely:

• •Improvement Plan Execution: Scrutinize the specifics of the company’s plan. Are they selling non-core assets? Are they securing new financing? Is management taking clear, decisive action?
• •Financial Filings: Pay close attention to quarterly reports for any signs of stabilizing revenue, margin improvement, or debt reduction.
• •Corporate Governance Changes: Look for efforts to enhance transparency and strengthen the management team, as this is a key part of the Exchange’s review. This is a common step in the corporate turnaround process.

External macroeconomic pressures, such as sustained high interest rates and volatile shipping costs, as reported by leading financial analysts (Reuters), will only add to the company’s challenges.

Investment Recommendation

For Potential Investors: Entering a new position in ILJIN DISPLAY stock at this juncture is an extremely high-risk endeavor. The potential for a total loss of capital in a delisting scenario is significant. It is strongly advised to remain on the sidelines until there is concrete evidence of a sustainable recovery and trading has resumed.

For Existing Shareholders: The capital is currently locked due to the trading suspension. The best course of action is to diligently follow the company’s progress. Avoid emotional decision-making and focus on the objective metrics outlined above. The fate of your investment rests entirely on the company’s ability to execute its improvement plan over the next year.

In conclusion, the ILJIN DISPLAY improvement period is a final chance, not a guarantee. The path ahead is fraught with challenges, and investors must proceed with the utmost caution.