[비즈한국] KOSDAQ-listed semiconductor fabless company Fadu440110 has escaped the threat of delisting. On the 3rd, the first day of trading resumption, Fadu's stock price closed up 30% from the previous day. Concurrently, founder and CEO Lee Ji-hyo stepped down from his position and resigned from the board of directors as part of a management overhaul. Alongside the change in leadership, Fadu reorganized its board to demonstrate a commitment to strengthening management transparency.
Fadu's stock price is surging following the lifting of the trading suspension. As of 9:05 a.m. on the 4th, Fadu's stock price recorded 35,850 won, up 29.9% from the previous day, surpassing its IPO price (31,000 won). On the 2nd, the Korea Exchange's KOSDAQ Market Division announced that Fadu had been excluded from the list for substantive listing eligibility review. On the 3rd, when trading resumed after about six weeks, the stock price reached 27,600 won, a 29.9% increase from its closing price of 21,250 won on the day before the suspension (December 18, 2025).
The Korea Exchange announced on December 19, 2025, that reasons for a substantive review of listing eligibility had arisen for Fadu. The reason provided was: "As a result of checking the indictment filed against Fadu and its management with the Seoul Southern District Prosecutors' Office, it was discovered that Fadu had omitted or falsely stated significant matters for investor protection in the documents submitted for its listing review."
Fadu, which entered the KOSDAQ market on August 7, 2023, via the special technology listing track, faced allegations of inflating revenue projections during its initial public offering (IPO) process. In its securities registration statement during the IPO, the company specified an estimated 2023 revenue of 120.3 billion won; however, after posting performance far below estimates in the third quarter of 2023, the stock price plummeted that November.
Following the incident, the Financial Supervisory Service's Special Judicial Police for Capital Markets, which launched an investigation, referred Fadu to the prosecution in December 2024 on charges of violating the Capital Markets Act. Minor shareholders who incurred losses also filed a securities class action lawsuit against the IPO lead underwriter NH Investment & Securities005940 and Fadu (Related article: Fadu Shareholders File General Civil Lawsuit Against NH Securities and Fadu).
Nevertheless, Fadu appears to have been able to resume trading thanks to rapid improvement in its performance. By securing large contracts for controllers and finished products for enterprise solid-state drives (SSDs), Fadu achieved 43.5 billion won in revenue in 2024. Following contracts worth over 10 billion won in the second half of 2025, it recorded 67.3 billion won in orders in January of this year alone.
An exchange official explained, "When conducting a substantive review of listing eligibility, we comprehensively examine not only the cause of the issue but also business sustainability, financial stability, and management transparency in accordance with KOSDAQ listing regulations. Being excluded from the review means that, after assessing the impact on the market, we determined it was more appropriate to maintain the company's listing rather than delist it. This conclusion was reached considering that there are no serious issues with corporate continuity or financial health, and that the company has made efforts to restore management transparency."
In fact, Fadu embarked on a leadership change as part of its management overhaul. On February 2, it transitioned from a co-CEO system of Nam I-hyun and Lee Ji-hyo to a single-CEO system under Nam I-hyun. Former CEO Lee Ji-hyo also resigned from his position as a registered director. In addition to changing the leadership structure, Fadu reorganized its board of directors and recruited personnel to strengthen compliance management.
Although founder and former CEO Lee is stepping down from the board, he will continue to handle practical tasks such as overseas business management and responding to legal risks. His future title within Fadu will likely be decided at the shareholders' meeting. Fadu stated, "Former CEO Lee will step down from his position and dedicate himself with a humble attitude for the continuous growth and organizational stability of the company."
After the resumption of trading, Fadu stated, "As we grew from a startup, we were insufficiently prepared for the expectations required of a listed company. We are deeply reflecting on this. We know well that what is important now is to restore market trust commensurate with our company's business, technology, and status." The company added, "We are devising various measures to enhance management transparency and responsible management. As part of this, we have reorganized our board of directors. We will thoroughly equip ourselves with the management systems required of listed companies going forward."
In a shareholder letter released on the 2nd, Fadu also expressed confidence in its performance improvement, stating, "We expect 2026 to be a boom year. Our Gen5 products have been selected by multiple mega-data centers and have entered the full-scale mass production stage. We are realizing the success in the global market that we promised at the time of listing, and are on the verge of turning a profit."
However, while Fadu has escaped the threat of delisting, it is not free from legal risks. The exchange judged whether to maintain the listing based on performance and other factors; the allegations of violating the Capital Markets Act have not been resolved. The Seoul Southern District Prosecutors' Office has indicted the Fadu corporate entity and its management for violations of the Capital Markets Act.
Fadu stated, "Our company and employees will sincerely cooperate with future procedures of regulatory agencies and the courts, and any further finalized matters will be disclosed in a timely manner in accordance with relevant laws and exchange regulations.".