[Alpha Biz= Paul Lee] Sambutokwon’s stock price has dropped by more than 25% on the 10th, following news that the Financial Supervisory Service (FSS) is speeding up its investigation into the company’s funds, which are at the center of stock manipulation allegations.
According to the Korea Exchange on Monday, as of 2:35 p.m., the stock was trading at 482 won, down 25.04% from the previous trading day. At one point during the day, the stock fell to 476 won.
The FSS announced that it is tracking over 200 accounts related to Sambutokwon, which had attracted attention as a potential "reconstruction stock" related to Ukraine but is now facing allegations of stock manipulation.
The investigation aims to determine whether a profit of around 10 billion won made by major shareholders and other stakeholders was funneled into these accounts. In particular, the FSS plans to examine whether the funds flowed into the hands of Lee Jong-ho, the former CEO of Black Pearl Investment.
Sambutokwon had been in the spotlight since last year as a "Ukraine reconstruction stock." The company’s stock price, which had been hovering around 1,000 won, surged to 5,500 won during the same year. However, due to deteriorating financial conditions, the company filed for court receivership at the Seoul Rehabilitation Court on the 24th of last month, and its stock trading was suspended on the same day.
On the 6th, the Seoul Rehabilitation Court decided to begin the company’s rehabilitation process, and trading resumed the following day. The stock has now fallen for two consecutive trading days.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
