"Invested 260 Million Won in Stocks, Went to Prison, Came Out to 10.5 Billion Won"... 40,000% Return 'Jackpot'
Invested 260 Million Won in Hyosung Heavy Industries, Then Spent 6 Years in Prison
"After Release, My Holdings Exceeded 105 Billion Won" – Story Goes Viral
As Hyosung Heavy Industries' stock price surpassed 4 million won, making it the highest-priced stock on the domestic market, the story of an investor who claims to have invested his entire fortune in Hyosung Heavy Industries six years ago before being incarcerated has gained widespread attention. According to him, after being released from prison six years later, the value of his shares had soared to over 105 billion won.
On May 7, a post titled "Buy Stocks Before Going to Prison" spread rapidly across various social media platforms. The author, referred to as Mr. A, wrote that in March 2020, just before being incarcerated, he used his entire deposit of 261 million won to purchase 30,000 shares of Hyosung Heavy Industries at 8,530 won per share. At the time Mr. A bought the shares, March 2020, Hyosung Heavy Industries was trading at its all-time low of 8,530 won.
After Release, He Checked His Account: 40,228% Rate of Return
After his release last month, Mr. A belatedly checked his account and claimed that the total valuation had grown to 105.21 billion won. His rate of return is 40,228%, and his valuation gain amounts to 104.949 billion won.
Mr A's rate of return is 40,228%, and the unrealized gain amounts to 104.949 billion KRW. SNS capture
View original imageMr. A commented, "If I hadn't gone to prison, I probably would have sold at around 10,000 won per share, but maybe going to prison was a stroke of luck. I'm at a loss for words, and with such an unbelievable amount, I don't even know where to begin."
However, the authenticity of this story has not been verified. Given the trading volumes at the time, analysts point out that it would have been realistically difficult for an individual investor to purchase such a large amount of shares near the lowest point in a single transaction. For this reason, some caution that posts of this kind may stimulate speculative investment sentiment. They warn that repeated exposure to extreme profit stories related to specific stocks could trigger so-called "FOMO (Fear of Missing Out)" behavior, leading to belated chase buying.
Stock Price Soars on AI Power Demand
The surge in Hyosung Heavy Industries' stock price is being attributed to the global expansion of the AI industry. AI data centers require the large-scale operation of high-performance semiconductors and servers, consuming much more electricity than traditional data centers. As these facilities must ensure a stable 24-hour power supply, there has been a sharp increase in demand for electrical equipment such as transformers, circuit breakers, and transmission and distribution systems.
The market interprets this as another "supply shortage cycle" following semiconductors. In fact, as investment competition in power grids intensifies, particularly in North America, domestic electrical equipment companies are seeing their order backlogs rapidly increase.
Hyosung Heavy Industries achieved record results last year, with sales of 5.9685 trillion won and operating profit of 747 billion won. Its North American sales exceeded 1 trillion won for the first time, while its order backlog grew to about 11.9 trillion won, a 34% increase compared to the previous year.
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Securities analysts are also optimistic about this year's performance. According to consensus estimates, consolidated sales in the second quarter are expected to reach 1.8172 trillion won, with operating profit at 287.6 billion won, representing increases of 19.1% and 75.1%, respectively, compared to the same period last year.
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