(LEAD) Bourse operator tentatively decides to delist scandal-ridden Sillajen

(ATTN: UPDATES with more info in paras 4-5)

SEOUL, Jan. 18 (Yonhap) -- South Korea's bourse operator on Tuesday tentatively decided to delist scandal-ridden bio tech firm Sillajen from its secondary bourse.

Trading of Sillajen stocks on the tech-laden KOSDAQ has been banned since May 2020 after the company's head and current and former executives were accused of embezzlement and dereliction of duty.

Following the decision by the corporate review committee of Korea Exchange (KRX), the KOSDAQ market committee will meet within 20 business days to make the final decision over whether to delist the firm.

"With a lack in new drugs in the pipeline and the injection of only 100 billion won (US$83.9 million) since Emtuen became the biggest shareholder, it is unclear if the firm can retain its corporate value," a KRX official noted.

In response, Sillajen said it will appeal the decision soon.

After its market debut on Dec. 6, 2016, shares of Sillajen once rallied to over 150,000 won in late 2017 before plunging to the 12,000-won level ahead of the trading ban, lower than its IPO price of 15,000 won.

pbr@yna.co.kr
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