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 led to 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 16% at the close of the previous day. Concerns among investors grew due to the relatively large amount of credit exposure linked 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 soundness remains stable."
Market fears had spread that the corporate rehabilitation filing by Central Group affiliates could lead to losses from related exposures. However, Hanyang Securities' announcement of a substantial recovery plan appears to have somewhat restored investor confidence. The company maintains that the impact of related exposures on its financial soundness is limited.
Notably, Hanyang Securities projects that the cumulative recovery amount will expand to 73.1 billion won by the end of this year, which represents about 87% of the total exposure. The company expects to recover the remaining amount by February of next year.
* This article has been translated by AI.
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