Samchundang Pharm Plummets from 1.23 Million Won to 200,000 Won Range: What Is the Future of KOSDAQ?

Samchundang Pharm, which briefly became the top company by market capitalization on the KOSDAQ after its stock price soared to 1.23 million won per share in March.

Following various controversies, its stock price plummeted, falling to the 200,000 won range in just over three months.

In February, Samchundang Pharm disclosed that it had signed commercialization agreements for oral diabetes and obesity treatments with 11 European countries, and issued a press release claiming the contract was worth 5.3 trillion won.

The company subsequently announced that it had signed an exclusive distribution agreement with the United States worth 15 trillion won. However, suspicions of false disclosure arose due to the fact that the counterparty was not disclosed, an unusually high profit-sharing ratio of 90 percent, and low upfront technology fees relative to the contract size.

At the time, the Korea Exchange designated the company as an unfaithful disclosure corporation and imposed penalty points. It has been confirmed that the Financial Supervisory Service has recently launched a formal investigation into Samchundang Pharm.

The authorities are focusing on whether there were any violations of disclosure obligations, such as the inclusion of false information in Samchundang Pharm's disclosures.

[Interview] Ahn Byung-jun / Lawyer: If it is revealed that they intentionally included false information or omitted facts, they could face a fine of up to 2 billion won, or imprisonment of up to 5 years or a fine of up to 200 million won under the Capital Markets Act.

A financial authority official remarked, "The plunge in Samchundang's stock price has poured cold water on the government's policy to revitalize the KOSDAQ market."

The KOSDAQ market, which marked its 30th anniversary on July 1, has failed to surpass the 1,000-point mark it held at its inception, unlike the KOSPI which has surged this year, as it continues to be overlooked by investors.

While the Financial Supervisory Service is preparing measures to improve disclosures for pharmaceutical and biotech companies, the Korea Exchange has also begun efforts to restore market confidence, such as strengthening the delisting system for insolvent companies.

[Interview] Choi Ji-woo / Executive Director, KOSDAQ Market Division, Korea Exchange: We will strengthen the criteria for accumulated penalty points for unfaithful disclosures to ensure that basic market discipline operates more strictly.

Attention is focused on whether the market, which has been stigmatized by the term KOSDAQ discount due to insolvent companies and controversies over unfair trading, can regain the interest of investors.

Investigation into Samchundang Pharm Begins... Can the 30-Year-Old KOSDAQ Restore Trust? (July 1, 2026, 8 O'Clock News)

Reported by Kim Hye-min | Written by Kim Da-yeon | Video by Jo Chang-hyun | Video Editing by Won Hyung-hee | Design by Kim Ye-ji and Choi Ha-neul | VJ Jung Han-wook | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.