This Year's Soaring 'Presidential Election Theme Stocks'... Owner Families Realize Hundreds of Billions in Gains

Daewon Construction, a Yoon Seok-yeol-Related Stock, Owner and Son Sell 18 Billion KRW Worth in One Month
Eastaco, a Lee Jae-myung-Related Stock, Major Shareholder Sells 1.15 Million Shares on Market

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Ahead of next year's presidential election, political theme stocks have surged, leading the owner families of these stocks to sell part of their shares, cashing out tens to hundreds of billions of won.

According to the Financial Supervisory Service's electronic disclosure on the 1st, Seo Jeong-seok, Executive Director of Daewon Cable, sold 2 million shares out of his approximately 2.84 million shares on the 28th of last month at 3,293 won per share on the market. Earlier, Seo Myung-hwan, the company's CEO, sold 1 million shares out of his approximately 1.24 million shares on the 21st at 3,307 won per share on the market. CEO Seo holds 74.37% of Gapdomulsan, the largest shareholder of Daewon Cable, and Executive Director Seo is his son. Executive Director Seo also sold 2 million shares and 1 million shares on the 4th and 18th, respectively. As of the previous day, CEO Seo's shareholding ratio decreased significantly from 1.76% to 0.33%, and Executive Director Seo's from 7.93% to 1.14%.

The company traded in the 1,500 won range until the end of last month but surged sharply from early last month after an outside director was revealed to be a university alumnus of former Prosecutor General Yoon Seok-yeol. The stock hit the upper limit price on the 1st and 15th of last month, soaring to 3,850 won, followed by a 23% surge the next day. At the time when the stock price surged as a 'Yoon Seok-yeol' theme stock, the Seo family sold a large portion of their shares, cashing out a total of about 18 billion won over the past month. This amount exceeds four times Daewon Cable's operating profit (4.2 billion won) last year.

Eastaco, a KOSPI-listed company, also saw its largest shareholder, Chairman Kim Seung-je, sell 400,000 shares over three days starting May 12, and continued to sell a total of 1.15 million shares on the market until the 29th of last month. Eastaco is a company engaged in real estate sales and leasing, and its stock price surged as it was considered a theme stock for Gyeonggi Province Governor Lee Jae-myung's long-term public housing policy, a presidential candidate. The stock price, which was below 700 won at the end of last year and considered a 'penny stock,' first surged to the price limit on February 17 this year and continued to rise sharply, reaching 7,550 won on the 28th of last month. The stock price increase rate reached 882.27% up to the previous day this year. Chairman Kim's shareholding ratio decreased from 26.38% to 23.7%, but he remains the largest shareholder.

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