Suspension of business due to production suspension from the beginning of the year… What about the performance hit

[이데일리 박정수 기자] Since the beginning of this year, listed companies in Korea have been shutting down their factories one after another. Also this year, due to the outbreak of corona 19 confirmed cases, it was decided to temporarily suspend operation (shutdown), and was in danger of stopping production. In particular, some companies are expected to suffer a loss of sales up to KRW 1 trillion due to suspension of business due to violation of the law.

[이데일리 김정훈 기자]

According to the Financial Supervisory Service on the 5th, a total of 7 companies announced the suspension of production and business suspension on the 4th. There are 4 KOSPI and 1 KOSDAQ discontinued, and 2 KOSDAQ discontinued.

Will close its Jeonju plant until the 10th to ensure flexible production and supply in line with the decline in market demand. Ceases production of some of the Ulsan plant (4-11 days, 4 hours day/night) due to the continuation of partial strikes with suppliers. In the case of the case, a corona 19 confirmed person occurred at the Gunpo plant, and a temporary shutdown (resuming production on the 15th) is conducted as a measure to inspect close contacts, self-isolate, and prevent spread.

In some cases, production has been discontinued due to administrative procedures. In the case of this, the operation of the Seokpo smelter was suspended for one month and 30 days due to administrative disposition for violation of the Water Environment Conservation Act, such as discharging wastewater without passing through pollution prevention facilities. The sales in the discontinued field alone amounted to 1.3 trillion won, which is 42.16% of last year’s consolidated sales. Youngpoong’s production suspension date is from April to the end of May according to the administrative disposition order.

The administrative disposition of the suspension of operations at the Seokpo smelter in Yeongpoong has been an issue since 2018. In 2018, the Ministry of Environment determined that the Seokpo smelter had discharged wastewater without passing through a pollution prevention facility and that it was discharged without passing through the final discharge port, violating the Water Environment Conservation Act. Both violations are suspended for 10 days each.

The Ministry of Environment commissioned Gyeongsangbuk-do to suspend operations for a total of 4 months due to the first suspension of operations (wastewater discharge) in 2018. After that, in April of last year, it applied for mediation to the Administrative Coordination and Coordination Committee, and the Administrative Coordination and Coordination Committee recommended that the suspension period of the Seokpo refinery be reduced to two months on the 9th of last month.

Controversy is expected as Youngpoong’s side is reviewing legal relief procedures. Considering that Gyeongsangbuk-do had a history of first suspension of operations in 2018, it was affirmed that the Gyeongbuk Health and Environment Research Institute did not comply with the water pollution process test standards in a trial held at the Daegu High Court in November last year. In terms of

An industry insider said, “In fact, the legality of Gyeongsangbuk-do will be shaken if it goes to a lawsuit because it was actually aggravated on the basis of non-compliance with fair standards during the disposition on the 20th.”

The province was subject to administrative disposition to suspend the manufacturing of medical device products for violations of the Medical Device Act. The sales in the discontinued production area alone amounted to about 23.9 billion won, which is 36.57% of the consolidated sales last year. Sales of medical devices subject to suspension of manufacturing operations for 6 months (January 14 to July 13) are about KRW 27.9 billion, and sales of medical devices subject to suspension of manufacturing operations for 7 months and 15 days (January 14 to August 28) are approximately KRW 1.3 billion. .

An official from Hans Biomed said, “We have replaced the suspension of some medical devices with a fine (82.74 million won). We are reviewing administrative lawsuits for the suspension of manufacturing by the Food and Drug Administration.”

In the case of, as the publishing contracts for online games’Naval Battles 1942′ and’Naval Battles M’expired, they were subject to a substantive examination of eligibility for listing by the Korean Exchange. This is because sales of about 14.6 billion won disappeared due to the expiration of the publishing contract of’Naval Battle 1942′ and’Naval Battle M’. This amounts to 73.67% of last year’s sales.

A NesM official said, “The sales of the expiration of the publishing contract accounted for a large proportion of the total sales, so we announced a suspension of business.” Said.

He added, “We are servicing more than 16 games in addition to the game that has been terminated, and two game contracts are in progress during this month.” It will be strengthened.”

Meanwhile, the exchange is planning to decide whether or not NesM’s eligibility for listing will be subject to substantive examination by the 25th.

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