Dongwon Industries and Dongwon F&B shares are both strong in early trading on the 17th. The improvement in buying sentiment is interpreted as being due to the easing of concerns over dual listing, as Dongwon Industries has decided to make its subsidiary Dongwon F&B a wholly-owned subsidiary.
As of 9:50 a.m. on the 17th, Dongwon Industries is trading at 44,400 won, up 2,200 won (5.21%) from the previous trading day in the KOSPI market. It recorded 44,550 won during trading, setting a new annual high. The stock price has risen more than 20% for three consecutive trading days up to this point.
At the same time, the subsidiary Dongwon F&B is also trading at 38,100 won, up 1,300 won (3.53%) from the previous day.
The influx of buying is interpreted as being due to Dongwon Industries' decision to incorporate its subsidiary Dongwon F&B as a wholly-owned subsidiary. Earlier, the two companies signed a comprehensive stock exchange agreement to incorporate Dongwon F&B as a 100% subsidiary of Dongwon Industries. Consequently, Dongwon F&B is expected to undergo delisting procedures.
Park Jong-ryul, a researcher at Heungkuk Securities, noted, "Dongwon Industries resolved the dual listing issue with its subsidiary incorporation decision," adding, "This will enhance the corporation's transparency and expand the number of outstanding shares, thereby activating transactions." He also projected that "Dongwon Industries will secure a second growth engine by entering the global food market together with Dongwon F&B."