[Alpha Biz= Paul Lee] Busan, South Korea – September 17, 2025 – Kumyang Co., Ltd., a secondary battery manufacturer currently under stock trading suspension, announced that it has once again delayed the payment date for its planned paid-in capital increase, raising concerns over both corporate normalization and investor confidence.



In a regulatory filing, Kumyang disclosed that the KRW 405 billion (approx. USD 295 million) rights offering scheduled for September 17 has been pushed back by one month to October 17. This marks the company’s third postponement of the transaction.



Back in June, Kumyang unveiled plans to issue 13 million common shares and 14 million redeemable preferred shares (RPS) to Saudi Arabian firm Skyve Trading & Investment via a third-party allocation, securing KRW 405 billion in fresh capital. Of this, KRW 250 billion was earmarked for the completion of a secondary battery plant, with the remaining KRW 155 billion to be invested in 21700 and 4695 battery production lines.



The announcement initially sparked optimism among shareholders, who saw the capital raise as a potential lifeline for the troubled company. However, that optimism has faded with repeated delays. The original payment date of August 2 was first pushed back to September 3, then to September 17, and now further to October 17.



A regulatory loophole leaves little room for intervention. Because the offering is a private placement to a single investor, it falls outside the Financial Supervisory Service’s review scope. Moreover, under Korea Exchange (KRX) rules, sanctions for “unfaithful disclosure” due to delayed payments only apply if the payment is deferred for more than six months — and only in the KOSDAQ market, not for KOSPI-listed firms like Kumyang.



While Kumyang avoids direct regulatory penalties, the repeated postponements are expected to deal a serious blow to investor trust and market credibility.

 

 

 

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