The logo of the Korea Exchange (KRX) is seen outside its Yeouido office in Seoul in this undated photo. Yonhap

The Korea Exchange (KRX), the country's sole bourse operator, is facing complaints from companies that want to go public as it keeps delaying the process required to determine whether companies qualify.

According to industry sources, Monday, multiple companies have not heard from the KRX for seven to nine months after they registered for preliminary approval for an initial public offering (IPO).

The preliminary approval is necessary for the companies to move onto the next step and finally receive confirmation for an IPO.

"The companies take the delay very seriously as the preliminary approval usually takes 45 days," a source said.

The delays are especially heavy on the junior bourse Kosdaq, where promising startups debut to draw investments and grow bigger.

Under the circumstances, sources speculated the KRX is overly cautious about giving the nod to firms seeking IPOs following the suspected fraudulent IPO of Fadu, a fabless semiconductor startup, last year.

Making its Kosdaq debut last August, Fadu inflicted losses on its investors as its performance was far lower than estimated in its pre-IPO documents.

A total of 63 companies are queued up as of Monday, after turning in relevant documents to the KRX for a Kosdaq debut. Eight other companies have already dropped their IPO plans due to the longer-than-expected delay in preliminary approval.

Among the 63 are NovmetaPharma, Uracle and Enzynomics. ·

NovmetaPharma, a pharmaceutical company, is making its fourth attempt to be listed on the Kosdaq since 2015. It registered for the evaluation procedure in July 2023.

Uracle, a mobile app developer, and Enzynomics, a biotech company, are still waiting for the KRX's response after both registered last September.

Meanwhile, some sources said the delay may have been caused by a delay in a management reshuffle after KRX CEO Jeong Eun-bo took office in February.

Jeong carried out a reshuffle in April.