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Kosdaq-listed bio firm faces probe over potential disclosure violations

Published: 16 Apr. 2026, 17:57

The building of the pharmaceutical company Sam Chun Dang Pharm [JOONGANG ILBO]

Korea's main bourse operator said Thursday it is set to review a bio firm, whose stocks rallied recently amid hype over its weight-loss drugs and oral insulin, to determine whether the firm violated disclosure regulations.

The Korea Exchange (KRX) said it has referred Sam Chun Dang Pharm, a local drugmaker, to its listing and disclosure committee for alleged failure to meet disclosure obligations.

A final decision on whether the company violated regulations will be made next Thursday, according to the KRX.

Stock prices of the pharmaceutical company rallied recently, as investor enthusiasm built around its next-generation drug pipeline, including oral insulin and a weight-loss drug.

The company's share price once surpassed the 1 million won ($680) mark, becoming the first company since 2023 to reach the milestone on the secondary, venture-heavy Kosdaq market, according to the bourse operator.

The KRX, however, issued a prior notice late last month that the company may be designated as a violator of disclosure regulations due to its failure to make fair disclosures regarding forecasts or projections on business performances, including operating profits.

The company is suspected of failing, on multiple occasions, to provide full information on business deals it claimed to have made.

Shares of the company were trading at 528,000 won as of 10:30 a.m. Wednesday, down 5.05 percent from the previous session's close.

Sam Chun Dang Pharm is currently the fourth-largest listing on the Kosdaq in terms of market capitalization.

Yonhap