The Korea Exchange said it tentatively decided to delist Sillajen from the tech-heavy Kosdaq market. Following the KRX decision, the Kosdaq market committee will determine whether to delist the biotech firm.

On Tuesday, the KRX held a meeting of the corporate review committee and said it would kick Sillajen out of the Kosdaq market because of its out-of-compliance practices.

Within the next 20 business days, the KRX will hold a meeting of the Kosdaq market committee and decide whether to delist Sillajen or give another grace period for business improvement.

The final decision has to be made by Feb. 15.

If the Kosdaq market committee goes ahead with the delisting decision, Sillajen stockholders will have seven days for the last stock transactions.

If Sillajen appeals the decision, the Kosdaq market headquarters has to hold another meeting of the Kosdaq market committee to review the delisting again.

On Tuesday, Sillajen released a statement on its website.

Sillajen CEO Jang Dong-taek said the KRX decided to delist the company, but Sillajen would “actively clarify to the Kosdaq market committee.”

“The company normally conducts major clinical trials and operating management activities including R&D as usual. I apologize for causing concerns to our shareholders.”

The KRX has prohibited the trading of Sillajen stocks since May 2020 after the company's executives were accused of embezzlement and dereliction of duty.

After holding the corporate review committee’s meetings several times in 2020, the KRX granted a one-year grace period for management improvement.

As the grace period expired in November 2021, Sillajen submitted a report on improving management to the KRX on Dec. 21.