LG Display and LG Energy Solution have been placed under preliminary designation as 'unfair disclosure companies' for failing to timely disclose the occurrence of embezzlement and breach of trust allegations.

According to a disclosure by the Korea Exchange on the 16th, LG Display and LG Energy Solution were each included as subjects of preliminary designation as unfair disclosure companies on grounds of failure to fulfill disclosure obligations. The unfair disclosure in question involves reporting matters related to embezzlement and breach of trust allegations that occurred on February 10 only on October 14. The basis for this preliminary designation is Article 33 of the KOSPI Market Disclosure Regulations.

According to the exchange's disclosure, both companies' accumulated penalty points over the past year were recorded as 0 points. Under Article 34 of the KOSPI Market Disclosure Regulations, the two companies may file objections to the preliminary designation by October 27.

Specific outcomes, including whether the companies will be designated as unfair disclosure companies, will be re-disclosed once confirmed. Neither company is currently confirmed as an unfair disclosure company, and the final designation will be decided later.

Meanwhile, the disclosure also noted that if the penalty points resulting from this preliminary designation reach 10 or more, this could constitute grounds for a substantive review of listing eligibility under Article 48 of the KOSPI Market Listing Regulations.