[Stock Focus] Samhwa Paints Hits Upper Limit for Second Day on Management Control Dispute Concerns

With expectations of a potential management control dispute emerging after the sudden death of the chairman, the share price of Samhwa Paints has been strong for two consecutive trading days.

As of 10:06 a.m. on the 10th, the share price of Samhwa Paints had risen to 2,850 won, hitting the upper price limit of 30.00% compared with the previous day. The stock has been locked at the upper limit for two consecutive days since the previous session.

Previously, in December last year, Chairman Kim Jangyeon of Samhwa Paints passed away, and his eldest daughter, Executive Vice President Kim Hyunjeong, was appointed as the new CEO. Chairman Kim was the second son of the late former Chairman Kim Bokgyu, the co-founder of Samhwa Paints, and had led the company since becoming CEO in 1994. He was also the largest shareholder, holding a 22.76% stake in Samhwa Paints.

As the new CEO Kim holds only a 3.04% stake, and the stake held by the family of the late former Chairman Yoon Heejung, a co-founder, has emerged as a key variable, it appears that this has ignited concerns over a possible management control dispute. The late Chairman Yoon's sons, Yoon Seokjae and Yoon Seokcheon, hold 6.90% and 5.52% stakes, respectively.

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