KOFIA to Support K-OTC Trading for Delisted Iljung Industrial

The Korea Financial Investment Association (KOFIA) is providing trading support for Iljung Industrial on the K-OTC market for up to six months following the company’s delisting from the KOSPI. According to a report by Lead Economy on July 27, 2026, the association designated Iljung Industrial as a delisted company on the K-OTC market to facilitate liquidity for shareholders.

K-OTC Trading Support for Iljung Industrial

KOFIA’s decision to support trading on the K-OTC (Korea Over-The-Counter) market allows investors to trade shares of companies that have been removed from the main exchange. This mechanism is designed to prevent sudden liquidity freezes that typically follow a KOSPI delisting. The support period for Iljung Industrial is set for a maximum of six months, as reported by Lead Economy.

The K-OTC market operates as a regulated over-the-counter platform where unlisted stocks or delisted stocks can be traded. By designating Iljung Industrial as a delisted company within this framework, KOFIA enables a structured environment for price discovery and share transfers that would otherwise be difficult in private peer-to-peer transactions.

Context of the KOSPI Delisting

Iljung Industrial previously traded on the KOSPI, the primary stock exchange in South Korea. While the specific triggers for the delisting were not detailed in the Lead Economy report, the transition to the K-OTC market serves as a temporary measure to protect investor interests. Under standard K-OTC rules, delisted companies are granted a window of trading support to allow existing shareholders to exit their positions or adjust their holdings.

The six-month window provided by KOFIA is a standard regulatory tool used to mitigate the impact of delisting. Once this period expires, the company’s shares may either remain on the K-OTC market if they meet ongoing requirements or move toward a completely unlisted status, which significantly reduces trading volume and price transparency.

Implications for Shareholders

For shareholders of Iljung Industrial, the K-OTC designation provides a verifiable platform to execute trades. Trading on the K-OTC market is generally more accessible than private transfers, as it utilizes a system managed by KOFIA. However, liquidity on the K-OTC market is typically lower than that of the KOSPI, which can lead to higher volatility and wider bid-ask spreads.

Investors are required to use K-OTC-affiliated securities firms to participate in these trades. The association’s role in this process is to oversee the designation and ensure that the trading of the delisted entity follows established market protocols during the six-month support phase.