A Cruel March Full of Adversities... What Will HDC Hyundai Development Company’s '100,000 Ants' Do After Missing the Peak?

[Asia Economy Reporter Ji Yeon-jin] Donghak ants, who embarked on ‘blind investment’ expecting high returns amid the prolonged bear market since last year, have been hit by a sudden blow. Stocks that had been thriving thanks to various positive factors such as typical political themes including the presidential election, mergers and acquisitions (M&A), and COVID-19 reopening, suddenly turned into negative news and plunged sharply.

According to the Korea Exchange on the 29th, HDC Hyundai Development Company showed a steep decline early in the trading session following a drop of more than 5% the previous day. This stock has been plummeting since news broke that the Ministry of Land, Infrastructure and Transport requested Seoul City to revoke its construction business registration in relation to the collapse accident at the Hwajeong I-Park new construction site in Seo-gu, Gwangju, last January. If Seoul City decides to suspend operations or revoke the registration of HDC Hyundai Development Company, the Exchange will conduct a substantial review of listing eligibility to assess the scale of suspended operations, and stock trading will be halted. According to the company’s business report, there are 98,622 minority shareholders. The largest shareholder is HDC with 41.48%, and the National Pension Service is the second-largest shareholder with an 11.67% stake.

Edison Motors, which entered the bid to acquire Ssangyong Motor, saw its subsidiary Edison EV close at the lower limit price (29.80%) yesterday after the acquisition of Ssangyong Motor was effectively canceled, and it is currently plunging more than 20% during today’s trading session. U&Eye, a medical device company in which Edison EV is the largest shareholder, also closed at the lower limit price yesterday and has fallen more than 20% since the start of today’s trading.

Edison EV, acquired by Edison Motors in July last year, surged rapidly from late October last year when news of its participation in the Ssangyong Motor acquisition bid broke, recording a return of over 654% in just half a month. However, in November last year, uncertainty over Edison Motors’ acquisition of Ssangyong Motor surfaced, causing a plunge of more than 50% in a single day, after which the stock stabilized in the mid-20,000 KRW range this year. But on the 22nd, after being designated as a management stock due to four consecutive years of losses, the stock price plummeted vertically, and following the announcement of the cancellation of the Ssangyong Motor acquisition contract yesterday, it has continued its streak at the lower limit price.

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