Huons and Huons Global have received advance notice of designation as 'unfaithful disclosure companies' from the Korea Exchange in connection with disclosures they issued and subsequently reversed (withdrew).

According to the Korea Exchange disclosure, Huons was cited for two grounds for the advance designation notice: ▲withdrawal of the decision on company merger and ▲withdrawal of the resolution to convene a shareholders' meeting (extraordinary general meeting). Both original disclosures were dated May 18, 2026, and the withdrawal disclosures were dated August 26 of the same year. The advance notice date is September 23.

For Huons Global, a total of three reversed disclosures were at issue: ▲withdrawal of the decision on company merger (major management matters of a subsidiary), ▲withdrawal of the resolution to convene a shareholders' meeting (extraordinary general meeting), and ▲withdrawal of the disclosure on 'Guidance on In-Kind Dividend Plan for Enhancing Shareholder Value,' a matter related to timely disclosure obligations (fair disclosure). The original disclosure dates were May 18 for the merger decision, May 28 for the resolution to convene a shareholders' meeting, and June 8 for the in-kind dividend plan guidance, while all three withdrawal disclosures were dated August 26.

The deadline for deciding whether to designate the two companies as unfaithful disclosure companies is October 22, 2026. Over the past year, the penalty points imposed for unfaithful disclosure stand at 0.0 points for both companies, and the applicable provisions are Articles 28 and 32 of the KOSDAQ Disclosure Regulations.

According to the disclosure, if the companies are ultimately designated as unfaithful disclosure companies and the penalty points imposed are 8 points or more, trading of their shares may be suspended for one day. In addition, if the cumulative penalty points over the past year, including those from this case, reach 10 points or more, the companies may be subject to a substantive review of listing eligibility under Article 56, Paragraph 1, Item 12 of the KOSDAQ Market Listing Regulations.