1. What Happened? Truston Files Lawsuit Against Taekwang

On September 17, 2025, Truston Asset Management filed a lawsuit against Taekwang Industry seeking an injunction to halt the company’s issuance of convertible bonds and disposal of treasury stock. Truston argues these actions are unjustified measures designed to defend existing management.

2. Why Does it Matter? Impact of the Dispute on Corporate Value

This lawsuit could disrupt Taekwang Industry’s new business investment and fundraising plans. Halting the issuance of convertible bonds and disposal of treasury stock could hinder its ability to secure funds, potentially impeding growth. Furthermore, a protracted management dispute could amplify market uncertainty and increase stock price volatility.

3. What’s Next? Fundamental and Market Analysis

  • Fundamentals: While Taekwang Industry has recently shown improvement in operating profit and net income, the uncertainty surrounding this lawsuit could cloud future earnings prospects.
  • Market Expectations: Currently, there’s limited information available regarding market expectations, making direct analysis difficult.
  • Macroeconomic and Industry Environment: Increased exchange rate volatility, rising raw material prices, and interest rate hikes could negatively impact Taekwang’s business environment. The rise in oil and freight index, in particular, will likely increase cost burdens.

4. What Should Investors Do? Key Investment Strategies

  • Closely Monitor the Legal Proceedings: Continuously track the progress of the lawsuit and the court’s decisions.
  • Review New Business Investment Plans and Performance: Analyze Taekwang’s new business initiatives and their performance.
  • Watch Macroeconomic and Industry Indicators: Understand the potential impact of external environmental changes on Taekwang.
  • Pay Attention to Company Communications and Management Strategies: Follow official announcements and IR materials to understand management’s response and future strategies.