What Happened? SYSWORK Files Injunction Against Delisting

On September 22, 2025, SYSWORK filed an injunction with the Seoul Southern District Court against the Korea Exchange’s decision to delist the company. This emergency measure aims to halt the delisting process and maintain SYSWORK’s listing pending the final court decision.

Why is SYSWORK in this situation? Deteriorating Fundamentals

SYSWORK faces a dire financial situation. As of the first half of 2025, the company is in complete capital impairment (-20.587 billion won) and has received disclaimers of opinion from auditors since 2021. Continuous operating losses and declining sales since 2023 raise serious doubts about the company’s profitability. Additional concerns include the cancellation and reapplication for rehabilitation proceedings, a decrease in the largest shareholder’s stake, and high dependence on a specific customer.

What’s Next? Uncertainty and a Glimmer of Hope?

If the injunction is granted, the delisting process will be temporarily suspended. However, this is a temporary measure. Regardless of the injunction’s outcome, the likelihood of delisting remains high without addressing the underlying financial problems. The success of the rehabilitation proceedings will be key to SYSWORK’s survival.

What Should Investors Do? Proceed with Caution

Investing in SYSWORK carries significant risk. Short-term stock volatility is expected depending on the injunction’s outcome, but speculative investments should be avoided. Investors must carefully consider the court’s decision, the progress of rehabilitation proceedings, and the possibility of financial improvement before making any investment decisions. Currently, investment is not recommended.