A sharp decline in the majority shareholder’s stake – a risk signal that individual investors are unaware of.

An announcement is made that the stock has been designated as a managed stock.

The stock price falls by nearly 30% that day.

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Only then will individual investors find out.

But the signs were there long before.

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What is incorporation into managed items?

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Management stock = A state in which the exchange warns investors due to the possibility of delisting.

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Incorporation criteria (based on KOSDAQ):

Sales less than KRW 3 billion

- Equity capital of less than 1 billion won or capital erosion rate of 50% or more

- Audit opinion rejection/inappropriate

- Continuing business loss before corporate tax exceeds 50% of equity capital (2 consecutive years)

If you just look at the financial statements, it often seems like “this will be fine” right before incorporation.

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Five leading signals captured by relational risk

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Not in the financial statements, but visible first in the network:

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① Repeated issuance of CB (2 or more times, within 2 years)

Structural signs of lack of financial independence

- Applicable to more than 80% of companies incorporated into managed items

② Major shareholders’ shares fall to less than 25%

Collapse of management defense line

- The majority shareholder is already implementing an exit strategy.

③ Rapid increase in the frequency of executive replacements (CEO replacement more than twice a year)

Signaling internal division or structural reorganization

- Repeated observations in managed stocks and closed companies

④ Connecting the network of CB acquirers and major shareholders

Conflict of interest structure = Paralysis of minority shareholder protection function

- Focus on controlling the time of sale of conversion volume

⑤ Change of audit firm (especially Big 4 → small firm)

Concerns about audit risk → Possibility of voluntary resignation from audit firm

- A precursor to rejection of the next audit opinion

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What does RaymondsRisk AUC 95.1% mean?

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The reason why 85.9% of the 276 companies with trading suspensions was captured in advance was because these five signals were quantified in a complex manner.

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Reads the entire network, not just a single indicator.

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key message

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Incorporation into managed stocks is not a sudden event.

This is the result of what has already been going on for a long time behind the numbers.

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■ Reference materials

Lim (KCMI): Study on KOSDAQ small-cap price abnormalities

- Keum (2024): Private CB = Demonstration of red flags

- Heo Seo-young (2025): CB conversion event and minority shareholder loss

- RaymondsRisk White Paper: https://www.konnect-ai.net/whitepaper

#relationalrisk #raymondsrisk #raymondsindex #konnectai