Hyosung Chemical is experiencing a significant drop in its stock price on the first day of trading resumption. While concerns about delisting have been alleviated following the Korea Exchange's decision to maintain its listing, the decline is attributed to a surge in sell orders from investors who had been waiting to realize profits after a prolonged trading halt.
As of 10:46 a.m. on June 15, Hyosung Chemical shares were trading at 64,200 won, down 13,600 won (17.48%) from the previous trading day, according to the Korea Exchange.
Trading resumed today after the Korea Exchange's corporate review committee met on June 12 and decided to maintain Hyosung Chemical's listing eligibility. Consequently, the suspension of trading in its shares was lifted.
Last year, Hyosung Chemical was granted a period for improvement due to concerns over its deteriorating financial structure and capital erosion. Since then, the company has implemented significant self-rescue measures. It reported that it has resolved capital erosion and improved its debt ratio through the sale of its specialty gas division, the Onsan tank terminal, partial divestment of its Vietnamese subsidiary, attracting external capital, and issuing 200 billion won in new hybrid capital securities.
The company has also been working on improving profitability. It halted its unprofitable TPA business and initiated workforce restructuring, cost-cutting measures, and expansion of high-margin product sales, resulting in a return to operating profit in the first quarter of this year. Additionally, it has taken steps to enhance management transparency by establishing internal accounting controls at its overseas subsidiaries and replacing management.
However, the market perceives that the decision to maintain the listing was anticipated, leading to the release of accumulated sell orders coinciding with the resumption of trading.
* This article has been translated by AI.
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