[Featured Stock] DisplayTech, Hyundai Motor Group-HanChungJeon Electric Vehicle Charging Infrastructure Accelerates

[Asia Economy Reporter Hyungsoo Park] DisplayTech is showing strong performance. It appears that the news of Hyundai Motor Group considering participation in the paid capital increase of Korea Electric Vehicle Charging Service (HanChungjeon), a leading domestic charging operator, has influenced the stock price.

As of 1:36 PM on the 5th, DisplayTech is trading at 9,540 KRW, up 21.99% compared to the previous trading day.

Hyundai Motor Company and Kia announced the day before that they are considering participating in the paid capital increase of Korea Electric Vehicle Charging Service (HanChungjeon), an electric vehicle charging business operator. HanChungjeon operates a total of 3,100 fast and regular chargers nationwide, including 630 fast chargers, making it the largest private charging operator in Korea based on the number of fast chargers.

It is reported that Korea Electric Power Corporation (KEPCO) and KT, which were expected to participate in HanChungjeon's paid capital increase, will withdraw. KEPCO's shares are being considered for acquisition by KT and DisplayTech, who have major shareholder preemptive rights. Since KT sold all the charging facilities it operated last year to Chajibi and ceased its business, DisplayTech's additional share participation is attracting attention.

If only Hyundai Motor and Kia participate in the capital increase, their combined shares are expected to increase to the 50% range. Currently, Hyundai Motor holds 14.4% and Kia holds 9.6%, totaling 24%.

Industry insiders view this capital increase by the two companies as a move to secure charging infrastructure through the normalization of HanChungjeon's management. Hyundai Motor Group has been installing electric vehicle infrastructure nationwide, including the ultra-fast charging station 'e-pit', and outsourcing billing and customer management services to specialized companies. After the capital increase, HanChungjeon is expected to take full responsibility for not only Hyundai Motor Group's existing charging infrastructure but also the installation, operation, and management of additional charging facilities. It will also be possible to operate independent charging services such as PnC and wireless charging.

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