KRX Warns LG Affiliates Over Delayed Disclosure

What happened

The Korea Exchange (KRX) announced on Oct. 16 that it had notified LG Display and LG Energy Solution of their potential designation as companies in violation of disclosure requirements. The two companies filed criminal complaints on Feb. 10 against a former LG Energy Solution president surnamed Lee, alleging breach of trust in the course of business, but did not disclose the matter until Oct. 14, revealing the complaints only after the exchange requested disclosures concerning allegations of embezzlement and breach of trust involving a former executive. The alleged breach of trust disclosed by the two companies totals approximately 7.5 billion won; Lee is suspected of causing financial losses by arranging consulting payments to a Chinese firm linked to his family while serving as president. A KRX official said allegations of embezzlement or breach of trust involving executives are subject to mandatory disclosure regardless of the amount involved. The companies have until Oct. 27 to file objections; based on their explanations, the exchange will review the circumstances of the delayed disclosures, whether the delays were intentional and the seriousness of the matter before deciding whether to designate them as disclosure violators and impose penalty points. Disclosure violations can result in penalties ranging from two to 14 points; eight or more points in a single case triggers a one-day trading suspension and a disclosure violation designation displayed next to the stock name for a specified period, while accumulated penalty points of 10 or more within one year could trigger a substantive review of listing eligibility. Neither company has accumulated any penalty points over the past year.

Impact and signal

Affected components and suppliers

Source and time

Source: The Elec · 10/17/2026 · View original source