Seoul: The number of companies facing possible delisting from the South Korean stock market due to poor financial health dropped slightly this year, the country's main bourse operator said Thursday.

According to Yonhap News Agency, the Korea Exchange (KRX) reported that 54 firms among those that close their books in December have received sub-standard opinions, including disclaimer opinions, on their financial statements. This marks a decrease from the 57 firms that were on the verge of delisting last year for the same reason, the KRX stated.

A disclaimer of opinion is a situation where an auditor is unable to obtain sufficient audit evidence and, as a result, cannot express an opinion on the company's financial statements. Of the 54 firms identified, 12 are listed on the main Korea Composite Stock Price Index (KOSPI) bourse, while the remaining companies are traded on the tech-focused KOSDAQ market, according to the KRX.