Kumyang, once a standout in South Korea’s booming secondary battery sector with a market cap that briefly topped 10 trillion won ($6.8 billion), now faces the risk of delisting just two years later.
The company announced in a regulatory filing after market close on Mar. 21 that its external auditor had issued a disclaimer of opinion on its financial statements—a red flag indicating that the auditor could not obtain sufficient evidence to form an opinion. In such cases, the Korea Exchange typically suspends trading and may proceed with delisting procedures.
As of now, Kumyang’s market capitalization has plunged to 630 billion won ($0.42 billion), leaving most investors deep in the red. The company is allowed to request a review within 15 business days, but the outcome remains uncertain.
The audit rejection stems from severe financial issues. In 2024, Kumyang posted a net loss of approximately 132.9 billion won ($0.09 billion), and its current liabilities exceeded current assets by 634.1 billion won ($0.43 billion). Hanul LLC, the external auditor, cited “significant uncertainty that casts substantial doubt on the company’s ability to continue as a going concern.”
Kumyang, originally a foam materials manufacturer, entered the battery business in 2020 as a latecomer but quickly gained attention in the stock market. Much of that hype was driven by promotional efforts from Park Soon-hyuk, the company’s former PR director, widely known as “Battery Uncle” among retail investors.
Fueled by speculation, Kumyang’s share price soared to 159,000 won on Jul. 31, 2023. But the stock has since collapsed—plunging 93.7% to close at 9,900 won on Mar. 21.
While most secondary battery-related stocks have slumped since the second half of 2023 amid cooling demand in the EV sector, Kumyang’s decline has been especially steep. Analysts point to growing skepticism over its overseas mineral development ventures in Mongolia and the Congo, as well as unverified claims about its cylindrical battery technology.
The company has repeatedly touted its next-generation cylindrical battery as the “industry’s best,” with mass production set for this year. But so far, no concrete results have been presented. According to business filings, Kumyang holds 19 patents—only five of which are related to batteries.
Meanwhile, construction of its new production plant in Busan has been delayed due to unpaid construction costs.
“The three major Korean battery manufacturers already hold key patents, yet they still struggle with mass production yields for next-generation cylindrical batteries,” said an official from the battery industry. “It’s questionable whether Kumyang has the capability to deliver.”
