The stock price of SK Innovation has been fluctuating, with executives who participated in the capital increase subscription in September 2023 reporting about a 33% valuation loss. Recently, the stock price of SK Innovation surpassed the capital increase price (subscription price of 139,600 won per new share); however, not a single executive sold their shares due to disclosure pressure.
The stock price of SK Innovation closed at 93,600 won on the 18th. Last month, it rose to 140,200 won intraday, but concerns grew that international oil prices would plummet and demand for electric vehicle batteries would decrease after U.S. President Donald Trump announced plans to impose tariffs indiscriminately worldwide, leading to a significant decline in stock prices thereafter.
When the capital increase occurred in September 2023, about 90% of all employees participated, with an average subscription amount reported to be in the hundreds of millions of won. It is said that some executives invested hundreds of millions of won considering loyalty to the company and their roles as leaders. Since the stock price of SK Innovation was in the 180,000 won range at the time of the capital increase announcement, they may have seen it as an opportunity to acquire shares at a low price.
The mandatory holding period for the capital increase ended in September of last year; however, the stock price of SK Innovation remained in the 100,000 to 120,000 won range, leading to ongoing losses. Then, it rebounded to the 140,000 won range last month. Employees could have liquidated their shares when the stock price recovered, but the executives did not sell.
Under current law, key shareholders and executives of listed companies are required to disclose the quantity, price, and purpose of their transactions within five business days after trading their company's stocks. They could sell their shares and make the disclosure, but an atmosphere has developed where executives, sensitive to internal evaluations, find it difficult to sell stocks.
It is reported that a few years ago, when an executive suffered losses and disposed of a large amount of stock, it became known through disclosure, leading to controversy. Among large company executives, it is said that unless they are about to resign, it is realistically challenging to dispose of stocks during their term.