When does delisting occur, and how have the criteria for inadequate audit opinions changed?

Delisting occurs immediately when "inadequate audit opinion" occurs 2 consecutive times.

Here, inadequate audit opinion means "qualified", "adverse", and "disclaimer of opinion" opinions, and when occurring 2 consecutive times, the company becomes subject to delisting.

However, exceptions are recognized for companies in rehabilitation or workout, and objections are not allowed.

Previously, companies that received inadequate audit opinions could maintain their listing through objections by being granted improvement periods until the next audit opinion came out.

However, going forward, since delisting will occur immediately when occurring 2 consecutive times, companies must receive an unqualified opinion in the re-audit or next audit.

As a result, the response time and improvement period for companies have been greatly shortened, so companies that have received inadequate audit opinions must immediately do their best to resolve the problem.

Meanwhile, even if the inadequate audit opinion is resolved with an unqualified opinion in the re-audit or next audit, since it becomes subject to listing eligibility substantive examination, a separate examination procedure is conducted to determine whether to maintain the listing.