Hankook & Company is showing a decline of about 7% in early trading on the 2nd. The prediction that Cho Hyun-bum, chairman of Hankook & Company Group, could face a resumption of the management dispute following his arrest has led to a surge in stock prices, which appears to have triggered a wave of profit-taking selling.
As of 9:23 a.m. that day, Hankook & Company was trading at 19,300 won, down 1,000 won (4.93%) from the previous trading day.
Hankook & Company's stock price surged after Cho Hyun-bum received a three-year prison sentence for charges of embezzlement and breach of trust in the first trial on the 29th of last month. Following the news of Cho's arrest, predictions of a management dispute led to a surge in stock prices. At that time, Hankook & Company finished the transaction up 18.68% from the previous trading day at 19,890 won.
As the stock price surged in a short period, a wave of profit-taking selling emerged on the 2nd, leading to what appears to be a correction phase. Analysis suggests that the likelihood of a management dispute occurring is low, as the honorary chairman, Cho Yang-rae, who acted as a white knight during the management dispute with MBK, has substantially increased his equity, boosting Cho Hyun-bum's supportive equity to 47.19%. This analysis also seems to have fueled the decline in stock prices.