Korea Exchange Announces Preliminary Designation of Korea & Company as 'Short-term Overheated Stock' (Comprehensive)

Application of 30-Minute Interval Single Price Trading Method for 3 Trading Days

The Korea Exchange has announced a preliminary designation of Hankook & Company as a short-term overheated stock. When designated as a short-term overheated stock, a single-price trading method in 30-minute intervals will be applied for three trading days.

According to the Korea Exchange's electronic disclosure on the 8th, the Korea Exchange announced the previous day that Hankook & Company may be designated as a short-term overheated stock pursuant to Article 106-2 of the Securities Market Business Regulations and Article 133-2 of the Enforcement Rules of the same regulations. The preliminary designation date is December 8.

The criteria for designation as a short-term overheated stock include stock price increase rate (the closing price on the day is 130% or more of the average closing price of the previous 40 trading days), turnover rate (the average daily turnover rate for the most recent two trading days including the day is 600% or more of the average daily turnover rate of the previous 40 trading days), and stock price volatility (the average daily stock price volatility for the most recent two trading days including the day is 150% or more of the average daily stock price volatility of the previous 40 trading days).

Meanwhile, Hankook & Company closed at 22,150 KRW on the 8th in the KOSPI market, and it was observed that all three criteria of stock price increase rate, turnover rate, and stock price volatility were met.

Earlier, on the 5th, MBK Partners decided to conduct a public tender offer for 20.35% to 27.32% of Hankook & Company's shares together with Cho Hyun-sik, the eldest son of Honorary Chairman Cho Yang-rae, until the 24th.

The stock price of Hankook & Company has exceeded the tender offer price of 20,000 KRW, drawing attention to the success or failure of the tender offer.

Since the tender offer began on the 5th, the stock price of Hankook & Company has fluctuated repeatedly, increasing volatility amid the tender offer initiated by MBK Partners and the side of Cho Hyun-sik, Hankook & Company advisor and eldest son of Honorary Chairman Cho Yang-rae, and Cho Hee-won, the second daughter.

On the first day of the tender offer, the 5th, the stock closed at the upper limit compared to the previous day (closing price 21,850 KRW), and on the following day, the 6th, it ended trading down 5.03% from the previous day.

Thereafter, the stock price continued to rise for two consecutive days, reaching the 22,000 KRW range. In particular, on the previous day, it rose intraday to 23,750 KRW, marking a 52-week high.

Trading volume during the tender offer period also surged. According to financial information provider Yonhap Infomax, the average daily trading volume over four trading days from the 5th to the current day was approximately 5,587,000 shares, more than 12 times the average daily trading volume of about 455,000 shares over the previous four trading days (November 29 to December 4).

Currently, Chairman Cho Hyun-beom holds a 42.03% stake, while Advisor Cho (18.93%) and Ms. Cho (10.61%) hold a combined 29.54% stake.

Applying the closing price of 22,150 KRW on this day, the funds required for Chairman Cho to increase his stake to 50% are approximately 170 billion KRW.

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