Korea Stock Market Insights

Tag: Substantive Examination

  • iCure at Risk of Delisting? Designated for Substantive Examination, Investor’s Guide

    iCure at Risk of Delisting? Designated for Substantive Examination, Investor's Guide 대표 차트 이미지

    What Happened? iCure Designated for Substantive Examination

    The Korea Exchange (KRX) has designated iCure for substantive examination regarding its eligibility to remain listed. The KRX will determine whether to delist or grant a grace period by October 22, 2025. If iCure submits a management improvement plan by October 15, the review will be conducted within 20 days of the submission date.

    Why the Examination?

    The specific reasons for the examination have not yet been disclosed. Previous amendments to business reports focused on shareholder meeting procedures and did not directly relate to financial soundness. However, the designation itself increases management uncertainty and could indirectly burden financial conditions. The possibility of accounting transparency and internal control issues cannot be ruled out.

    What’s Next? Stock Outlook and Investment Strategy

    The designation for substantive examination has a very negative impact on stock prices. Generally, from the announcement date to the decision date, the stock price drops sharply, and trading volume surges. Stock volatility may increase further depending on the submission and review results of the management improvement plan. A sharp decline is inevitable if the company is delisted. Therefore, investors should approach with extreme caution and consider the worst-case scenario.

    • Short-term Impact: Sharp drop in stock price, surge in trading volume, dampened investor sentiment.
    • Long-term Impact: Continued listing or delisting, depending on the KRX’s decision.

    Investor Action Plan

    • Pay close attention to iCure’s public announcements and news for the latest updates.
    • Make careful and conservative investment decisions, considering the worst-case scenario.
    • Consult with financial professionals and manage risk through portfolio diversification.
    Why is iCure facing delisting?

    The Korea Exchange has designated iCure for substantive examination due to concerns regarding its listing eligibility. The exact reasons are yet to be disclosed, but the KRX is reviewing the possibility of delisting.

    When will the results of the examination be announced?

    The results are expected by October 22, 2025. If iCure submits a management improvement plan by October 15, the review will be conducted within 20 days of submission.

    What should investors do?

    Investors should closely monitor iCure’s announcements and news and make cautious and conservative investment decisions. They should consider the possibility of delisting in the worst-case scenario.

    iCure at Risk of Delisting? Designated for Substantive Examination, Investor's Guide 관련 이미지

  • Axion Group: Delisting Crisis? Analysis of Substantive Examination Results and Investment Strategy

    1. What’s Happening? : Axion Group’s Substantive Examination Imminent

    Axion Group is facing a decision on whether it will be subject to a substantive examination for listing eligibility on September 5th. If it is determined to be subject to the review, trading will be suspended and additional review procedures will be followed. If not, guidance regarding the lifting of the trading suspension will be provided.

    2. Why is This Happening? : Axion Group Faces Uncertainty Amid Business Diversification Efforts

    Axion Group is pursuing business diversification through the acquisition of MJ Tech Co., Ltd., expanding into machinery equipment, piping construction, and industrial robot businesses to overcome the sluggish e-commerce business. However, the growth potential of the new business is uncertain, and the soaring debt ratio, decreased cash assets, and frequent changes in CEOs raise concerns about the company’s stability. In particular, the high debt ratio of the acquired MJ Tech (362.7%) is a significant burden.

    3. So What Happens Next? : Short-Term Plunge Potential, Long-Term Outlook Uncertain

    In the short term, a sharp drop in stock price is expected due to the possibility of trading suspension and a decline in investor sentiment if the company is determined to be subject to the substantive examination. In the long term, even if trading resumes, whether the company improves its financial soundness and stabilizes its new business will determine the direction of the stock price. If delisted, investors will suffer substantial losses.

    4. What Should Investors Do? : Careful Information Gathering and Risk Management Essential

    • Confirm the announcement of the substantive examination results on September 5th: Investment strategies should be adjusted based on the results.
    • Continuously check for improvements in the company’s fundamentals: Check for positive changes such as a decrease in the debt ratio and securing profitability in the new business.
    • Monitor macroeconomic variables: Pay attention to the impact of external factors such as exchange rate and interest rate fluctuations.
    • Recognize high investment risks and invest cautiously: Careful review and risk management are essential before making investment decisions.
    When will the results of Axion Group’s substantive examination be announced?

    It is scheduled to be announced on September 5th.

    What happens if the company is subject to the substantive examination?

    Trading will be suspended and the company will undergo further review.

    What are Axion Group’s main businesses?

    In addition to its existing e-commerce business, the company is recently attempting to diversify into machinery equipment, piping construction, and industrial robot businesses through the acquisition of MJ Tech.

    What are the precautions for investing in Axion Group?

    Investments should be made cautiously, considering the high debt ratio and uncertainties surrounding the new business.