Korea Exchange "Investigation into Unfair Trading by EdisonEV Investment Association"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The Korea Exchange announced on the 4th that it is investigating whether there was any unfair trading activity related to the disposal of shares by the major shareholder of EdisonEV (formerly Semisysco), a manufacturer of ultra-small electric vehicles.

EdisonEV's stock price surged last year due to its affiliate Edison Motors' attempt to acquire Ssangyong Motor. During this process, major shareholder investment associations such as DMH disposed of most of their shares and realized profits, sparking so-called 'meoktwi' (profit-taking and abandoning) controversy.

Until the first half of last year, EdisonEV's stock price was only in the 1,000 won range, but it skyrocketed when rumors of Edison Motors' acquisition of Ssangyong Motor emerged. The stock price rose more than 340% in June last year alone, reaching as high as 82,400 won intraday in November of the same year.

According to electronic disclosures by the Financial Supervisory Service, five investment associations including DMH, SLH, Nomad Ivy, I'm Holdings, and Starlight purchased EdisonEV shares held by the previous largest shareholder from May to July last year and disposed of them a few months later. The combined shareholding of these five investment associations decreased from 34.8% at the end of May to 11.0% in early August.

In particular, DMH's EdisonEV stake dropped from 9.5% on May 30 last year to only 0.96% by July 9, about a month later. I'm Holdings also disposed of its entire 5.49% stake during a similar period.

The Korea Exchange is examining whether these actions constitute unfair trading such as insider trading, market manipulation, or fraudulent transactions.

An official from the Exchange said, "EdisonEV has been a stock under close watch since the Ssangyong Motor acquisition issue caused significant price movements," adding, "Especially, investment associations have unclear and opaque investment entities, which is a common method used in unfair trading, so we are monitoring them carefully."

He continued, "Since last year, news, disclosures, and stock price trends have revealed patterns that can only be seen as fraudulent trading," and stated, "If any charges are detected, we will notify the Financial Supervisory Service."

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