KOSDAQ-listed companies submitting equity securities registration statements for capital increases faced heightened scrutiny from South Korea's Financial Supervisory Service (FSS), with 40% of filings through the 6th this year receiving correction requests. Of 42 total filings (excluding duplicates from resubmissions), 17 companies were asked to amend disclosures at least once, generating 28 correction request notices, according to FSS electronic disclosure data accessed on the 7th. The pattern reflects stricter investor protection reviews on dilutive public offerings, as companies must adequately disclose fund usage and financial risks before proceeding with share issuance. Agent AI and Hanwool Semiconductor each received three correction requests, while Neuromeka, Daedong Gear, SensorView, SomeAge, Sangjee Construction, ToolGen, and Hurim A-Tech faced two rounds of amendments. South Korea's securities regulator stated at a meeting with brokerage firms last year that it would intensively examine the rationale and decision-making processes behind capital increases, signaling tightened oversight of equity fundraising disclosures.
Agent AI and Hanwool Semiconductor Face Repeated Delays After Multiple Correction Requests
Agent AI (060900) submitted its initial securities registration statement on March 26 to raise operating funds but has not filed a subsequent correction statement after receiving three correction requests. Hanwool Semiconductor (320000), pursuing capital for MLCC back-end inspection equipment business expansion, rescheduled its payment date from the originally announced July 20 to September 11, with new share listing pushed from July 31 to September 28. Sangjee Construction, raising funds for pre-project financing operating capital related to Nonhyeon-dong development, saw its allotment record date and subscription/payment schedule delayed by over one month following correction requests. Additional companies receiving correction notices included HLB Pharmaceutical (047920), Kyungnam Pharmaceutical (053950), Engen Bio (354200), and Penitrium Bio (187660).
FSS Tightens Review Standards on Investor Protection and Fund Usage Disclosure
The FSS announced at a meeting with securities firms last year that it would focus on the legitimacy and decision-making processes of capital increases, emphasizing investor protection in public offerings that dilute existing shareholder stakes and increase short-term supply pressure. Correction requests serve as a mechanism to verify whether investors have sufficient information to decide on participation in capital raises. The pattern extends beyond KOSDAQ: KOSPI-listed Hanwha Solutions (009830) received two correction requests this year, reducing its debt repayment amount from 1.4899 trillion won to 801.6 billion won and lowering its initial offering price from 32,250 won to 27,900 won, adjusting total募集 proceeds from 1.7092 trillion won to 1.4787 trillion won. Gyeyang Electric (012200) submitted a 40.877 billion won capital increase filing and subsequently supplemented investment risk disclosures after receiving a correction request.
Industry Voices Concern Over Prolonged Fundraising Timelines
A KOSDAQ-listed company official stated that firms pursuing capital increases increasingly report that the process to achieve securities registration effectiveness has become challenging, adding that while investor protection justification is necessary, companies with clear fund usage purposes express dissatisfaction that the primary advantage of listed status — access to capital — is becoming excessively constrained. The official noted that such concerns circulate among companies navigating the current regulatory environment.
FAQ
What percentage of KOSDAQ equity filings received FSS correction requests through the 6th this year?
40% of filings received correction requests. Out of 42 equity securities registration statements submitted by KOSDAQ-listed companies for capital increases (excluding duplicates from resubmissions), 17 companies were asked to amend disclosures at least once, generating 28 correction request notices.
Which KOSDAQ companies received the most correction requests for their equity filings?
Agent AI (060900) and Hanwool Semiconductor (320000) each received three correction requests. Neuromeka, Daedong Gear, SensorView, SomeAge, Sangjee Construction, ToolGen, and Hurim A-Tech each received two correction requests.
How did FSS correction requests affect Hanwool Semiconductor's capital increase schedule?
Hanwool Semiconductor's payment date was rescheduled from the originally announced July 20 to September 11, and the new share listing date was pushed from July 31 to September 28.
