[증권소식] Exchange, decision on whether to substantively review the listing of Osstem Implant Extension for a full week/National Pension Service, approval of POSCO physical division, etc.

[아시아타임즈=김지호 기자] ◆The Korea Exchange announced on the 24th that it had postponed the decision on whether or not Osstem Implant, which had been subjected to a large-scale embezzlement case, will be subject to a substantive examination of listing qualifications for a full week (based on business days).

The exchange announced, “Considering the need for additional investigation to determine whether Osstem Implant falls under the substantive examination for listing eligibility, we have decided to extend the investigation period by 15 business days.”

photo = Yonhap News

Osstem Implant announced on the 3rd that it had sued Lee, a money management employee, on charges of embezzlement on the job.

As the decision on whether to be subject to screening was delayed by a week, all procedures were delayed by 15 business days.

The exchange will determine whether Osstem Implant is eligible for listing eligibility by the 17th of next month and inform the continuation or cancellation of the transaction suspension.

If it is determined to be eligible for listing, the company must submit an improvement plan within 15 days, and the Exchange receives the improvement plan and reviews it within 20 days before handing it over to the Corporate Review Committee. If Osstem Implant submits the fiscal year 2021 business and audit report before the end of March, it will also be possible to verify it.

The committee decides one of three things: maintaining the listing, delisting, and granting an improvement period (within 1 year).

Trading resumes as soon as it is decided to ‘keep listing’, but if a decision is made to abolish it, it goes to the KOSDAQ Market Committee for review for 20 days.

However, if the KOSDAQ Market Committee decides to give the improvement period, the final judgment will be postponed to next year and the transaction will be tied for one more year. According to the decision of the Investigation Committee and the KOSDAQ Market Committee, the suspension of Osstem Implant trading could last up to two years or more.

Osstem Implant’s minority shareholders amounted to 19,856 as of the end of 2020. It holds about 55.6% (7.94 million shares) of about 14.29 million total issued stocks.

◆ 855 gold bars bought as part of the embezzlement money returned to the company by Mr. Lee (45, arrested), the head of Osstem Implant’s finance team, who embezzled 221.5 billion won from the company.

According to Yonhap News, the Seoul Southern District Prosecutors’ Office for Financial and Securities Crime Investigation Cooperation (Director Park Seong-hoon) announced on the 24th that “they promptly returned 855 gold bars (855 kg) worth about 69 billion won.”

“We actively considered the concern that unnecessary extended damages to the company and minority shareholders could occur if we wait for the disposition of confiscated items until a final judgment is issued,” he said.

Lee was sent to the prosecution on the 14th on charges of stealing 221.5 billion won from company money and using it to invest in personal stocks (embezzlement and concealment of criminal proceeds under the Aggravated Punishment Act for Specific Economic Crimes). After withdrawing 33.5 billion won, it is returned to the company, resulting in 188 billion won in embezzlement damage.

After seeing a loss in stock investment, Mr. Lee began to steal money, and it was found that he purchased 855 1kg gold bars worth 68 billion won. It was found that 851 of them were hidden in family residences such as their fathers, and real estate was purchased in the name of his wife and sister-in-law.

◆ The National Pension Service, the largest shareholder, decided to cast a vote in favor of POSCO’s conversion to a holding company.

The National Pension Service held a meeting of the Trustee Responsibility Committee (Trust Committee) on the 24th and decided to approve the decision after deliberation on the direction of exercise of voting rights on the issue of dividing POSCO into holding company POSCO Holdings and steel business company POSCO through physical division. .

The trustee said that the decision was made considering the possibility of new growth opportunities such as secondary batteries and hydrogen energy, as well as the fact that the steel subsidiary’s intention to go unlisted was reflected in the subsidiary’s articles of incorporation.

However, it is known that some members suggested that continuous monitoring is necessary in relation to the maintenance of unlisted subsidiaries as there is a risk of damage to shareholder value.

As of the end of September last year, the National Pension Service is the largest shareholder with a 9.75% stake in POSCO. Accordingly, the market’s attention was focused on the policy of the National Pension Service.

The National Pension Service previously voted against the physical spin-off of LG Chem and SK Innovation for fear of damaging shareholder value.

With the majority of domestic and foreign voting advisors recommending in favor of POSCO’s conversion to a holding company, the National Pension Service also decided in favor, increasing the possibility of passing the agenda for conversion to a holding company at the POSCO extraordinary general meeting of shareholders on the 28th.

In order to pass the general meeting, at least one-third of the total number of issued shares and at least two-thirds of the shareholders present must agree.

◆It was found that the National Pension Service recently sold the shares of HDC Hyundai Development Company, the original building of the Hwajeong I-Park collapse in Gwangju.

According to the Electronic Disclosure System of the Financial Supervisory Service, as of the 18th, the National Pension Service held 6,414,813 shares of HDC Hyundai Development Company (9.73% stake).

This is a decrease of 1.27,7513 shares from 7,692,326 shares (11.67%) at the end of last year.

According to the announcement, the National Pension Service sold 444,345 stocks and sold 1,721,858 stocks on the stock exchange from the 4th to the 18th (based on the settlement date), and sold more stocks.

In particular, it was found that 1,708,861 shares were sold in the three trading days from the 14th. During this period, only 199,336 stocks were purchased.

Considering that the payment date after the order is two business days later (t+2), the payment on the 14th is estimated as the transaction on the 12th.

On the same day (12th), HDC Hyundai Development Company reduced its stake in a stop-loss (loss cut) dimension when the stock price plunged 19.03% compared to the previous day due to a collapse accident at the new construction site of Hwajeong I-Park in Gwangju.

◆The results of quality control supervision for accounting firms introduced by the ‘Act on External Audit of Joint Stock Companies, etc.’ (New External Audit Act), which came into effect in November 2018, were disclosed for the first time.

On the 24th, the Securities and Futures Commission under the Financial Services Commission released the main contents of recommendations for improvement of audit results regarding compliance with quality management standards of accounting firms.

Among the 40 accounting firms registered as auditors of listed companies, the subject of this disclosure is 7 and 9 accounting firms, respectively, that the Financial Supervisory Service conducted quality control supervision in 2019 and 2020.

Quality control supervision refers to the procedure to see if the auditor is properly designing and operating the quality management system to maintain and improve the quality of the audit work.

Samil, Samjeong, Hanyeong, and Anjin, the so-called ‘four major accounting firms’, did not omit any design or operation of quality control procedures.

The four major accounting firms revealed loopholes in the ‘client relationship and acceptance and maintenance of specific tasks’ in common.

Although it was necessary to complete an assessment of the target company’s risk level and conflict of interest prior to signing a contract, the evaluation showed that a contract was signed before final approval.

Anjin Accounting Firm, which received the most 8 cases among the 4 major accounting firms, received more than 1 point in all 6 elements of the quality management system.

Small and medium-sized accounting firms were pointed out 12.9 to 15.0 cases per one, indicating that there are relatively more things to be improved than large companies.

Daejoo Accounting Firm did not even design a human resource management procedure, and although it designed a business performance management procedure, it did not operate it.

Dowon Accounting Firm and Seowoo Accounting Firm also had one undesigned and one non-operated element each.

It was pointed out that Shinhan Accounting Firm, Daesung Samkyung Accounting Firm, and Dowon Accounting Firm had insufficient control procedures for maintaining the confidentiality of audit information because their accountants used personal e-mails for their work.

Regardless of the size of the accounting firm, the lack of management in human resource factors was pointed out in common.

An official from the Financial Supervisory Service said, “With the introduction of the standard audit time system, management of the manpower and time has become important, but in many cases the procedures for entering and verifying manpower and time were insufficient.”

The number of recommendations for improvement, such as undesigned, non-operational, and partially insufficient, was relatively high at Daesung Samkyung Accounting Firm (20 cases), Jeongdong Accounting Firm (16 cases), and Shinhan Accounting Firm (15 cases). The four major accounting firms were found to be Samil 6 cases, Samjeong 5 cases, Hanyeong 5 cases, and Anjin 8 cases.

However, the SSC cautioned about the interpretation, saying, “It may not be appropriate to compare and evaluate the level of quality management between accounting firms based on the number of recommendations for improvement.”

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