Axion Group announced in a regulatory filing on the 11th that it has received a preliminary notice of designation as an unfaithful disclosure entity in connection with the withdrawal of its third-party allocation paid-in capital increase. According to the Korea Exchange, the reason for this preliminary designation is 'disclosure reversal.' It is a measure taken following the company's subsequent withdrawal of its previously announced decision regarding the paid-in capital increase. Reviewing the key dates of this case, the original disclosure date for the initial paid-in capital increase decision was April 15, 2025, and the disclosure date for its withdrawal was May 12, 2026. The preliminary notice date for the designation as an unfaithful disclosure entity is June 11, 2026. The Korea Exchange plans to finalize the designation of the unfaithful disclosure entity following a review process by July 6, 2026. According to the disclosure, Axion Group's accumulated penalty points related to unfaithful disclosures over the past year stand at 5 points. The Exchange stated, "If it is ultimately designated as an unfaithful disclosure entity and the penalty points imposed for this case are 8 points or more, trading may be suspended for one day." It further explained, "If the cumulative penalty points over the past year, including this case, reach 15 points or more, the company could become subject to a substantive review of its listing eligibility." However, this preliminary notice is not a finalized sanction, and the final designation status and the level of penalty points are expected to be determined through a future review by the Exchange.