Gangwon, Welcron Share Sale 'Double Profit'... 13 Billion KRW Cash Inflow Boosts New Business Momentum

[Asia Economy Reporter Eunmo Koo] Kangwon, a KOSDAQ-listed company, realized profits doubling its investment through the sale of shares in another company just over two months after changes in major shareholders and new management. Furthermore, with the inflow of approximately 13 billion KRW from the sale, Kangwon's future growth engine in the energy new business sector is expected to gain momentum.

Kangwon announced on the 3rd that it sold all of its previously held Welcron shares on the market. The asset transfer amount from the sale of 1,792,625 Welcron shares is 12.733 billion KRW. Compared to the time of the major shareholder change in December last year, Welcron's stock price has risen sharply recently, resulting in nearly 100% disposal profit within two months.

Welcron's stock price traded at an average mid-3,000 KRW level in December last year but surged to 8,820 KRW in January this year, hitting a 52-week high. This rapid increase is due to the spread of the novel coronavirus causing a daily shortage of hygiene products such as masks, and Welcron, which operates a mask manufacturing business, saw its stock price rise significantly.

According to Kangwon, it has completed the shareholding and relationship restructuring with former affiliates such as Welcron and plans to go "all-in" on the energy new business this year. As of the end of the third quarter, Kangwon secured a total cash liquidity of 34.5 billion KRW, combining the existing 21.5 billion KRW in cash equivalents with the 13 billion KRW from this share sale. Kangwon is currently actively reviewing business cooperation and mergers & acquisitions (M&A) with overseas natural resource and energy development companies.

A company official stated, "Since the change of major shareholders and the appointment of new management, we have been accelerating 'selection and concentration.' To shed the image of the former Welcron affiliate, we also changed the company name to 'Kangwon,' and with the completion of the Welcron share restructuring, we will be reborn as a new future energy specialized company 'Kangwon' starting this year."

This content was produced with the assistance of AI translation services.