Sam Chun Dang Pharm. Says 5-Point Exchange Penalty Will Not Affect Operations or Stock Trading

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[The Financial News]  Sam Chun Dang Pharm. Co., Ltd., which recently received a penalty point from the exchange for failing to meet disclosure obligations, said the latest review would not affect its business operations or stock trading and that it would make up for the incident with future results.
On the 21st, Sam Chun Dang Pharm. Co., Ltd. said in response to the Korea Exchange (KRX) KOSDAQ Market Division's review results, "We humbly accept the Korea Exchange's review results," adding, "However, there will be no impact on the company's business activities or stock trading, and all operations are proceeding normally."
The company stressed, "This matter stemmed from the fact that some information included in a specific press release could be interpreted differently from disclosure standards, and it has no direct connection to the company's business structure or performance," adding, "The review result is unrelated to major sanctions such as trading suspensions, designation as a monitored issue, or substantive review of listing eligibility."
In fact, the company continues to carry out normal business activities as before.
In particular, Sam Chun Dang Pharm. Co., Ltd. plans to fully strengthen its internal management system based on disclosure standards following this incident. It is currently operating a preliminary review process involving the finance, legal and disclosure departments, as well as a system for prior consultation with the exchange.
A company official said, "We have strengthened internal controls so that the same problem does not recur, taking this result as a lesson," and added, "Key businesses, including global commercialization of the Eylea biosimilar and the oral Insulin and Semaglutide pipelines, are proceeding as planned."
Meanwhile, in connection with the case, Korea Exchange (KRX) imposed a 5-point penalty on the press release and the company accepted it.
Earlier, on March 31, KRX had notified Sam Chun Dang Pharm. Co., Ltd. of its intention to designate the company as an unfaithful disclosure filer. It also said the Disclosure Committee, made up of outside experts, would review the case by considering the motive and significance of the disclosure violation. The exchange added that the total penalty points imposed on Sam Chun Dang Pharm. Co., Ltd. in connection with its designation as an unfaithful disclosure filer over the past year, including this case, came to 5 points.
kakim@fnnews.com Kim Kyung-a Reporter