A decision to resume trading of Daewoo Shipbuilding & Marine Engineering
shares is likely to be taken only in October, more than half a year later than market expectations.
According to industry sources, the Korea Exchange is likely to review DSME in October and decide whether to reopen trading of the shipbuilder’s stocks.
Trading was suspended on July 15 after it emerged that widespread accounting fraud had taken place. On Sept. 28, the KRX decided against delisting the company, but gave it one year to normalize operations.
Under related regulations, the KRX must decide whether to end or extend the suspension within 15 trading days from the end of the one-year normalization period.
In reviewing the issue, the KRX will look into DSME’s ability to continue operations, financial stability and transparency.
While the KRX is taking a cautious approach, Korea Development Bank is hoping for a quicker end to the trading suspension. The KDB is the shipbuilder’s largest shareholder and creditor.
The bank, which spearheaded the injection of 2.8 trillion won (US$2.38 billion) into the company, has expressed hopes that trading will resume in March.
By Choi He-suk (firstname.lastname@example.org)