Hanyang Securities' stock price is rebounding in early trading. The company's explanation that it can recover most of its exposure related to JoongAng Ilbo and JTBC within the year has improved investor sentiment.
According to the Korea Exchange, as of 10:08 a.m. on June 18, Hanyang Securities shares were trading at 20,650 won, up 2.74% (550 won) from the previous trading day.
Previously, Hanyang Securities' stock had plummeted by 16% at the close of the previous day. Concerns among investors grew due to the relatively large amount of credit exposure related to affiliates of Central Group, which recently filed for corporate rehabilitation.
In a press release on June 17, Hanyang Securities stated, "The recovery of 84 billion won related to JoongAng Ilbo and JTBC exposure is proceeding as planned, and our financial stability remains sound."
While there were widespread fears that the corporate rehabilitation filing by Central Group affiliates could lead to losses on related exposures, Hanyang Securities' announcement of a substantial recovery plan appears to have somewhat restored investor confidence. The company maintains that the impact of related exposure on its financial stability is limited.
Notably, Hanyang Securities expects the cumulative recovery amount to reach 73.1 billion won by the end of this year, which accounts for approximately 87% of the total exposure. The company anticipates that the remaining amount can also be recovered by February of next year.
* This article has been translated by AI.
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