1. What Happened? – Lawsuit Filed Against New Share Issuance
On August 8, 2025, YOM disclosed a “Material Fact Report (Filing of Lawsuit)” regarding a lawsuit filed against its new share issuance plan. The plaintiffs are seeking to invalidate the issuance of 8,951,406 common shares (approximately 14 billion KRW) approved by the board on August 4, 2025.
2. Why the Lawsuit? – Background and Key Issues
The exact background of the lawsuit remains undisclosed. However, considering past instances of corrections in business reports and minority shareholders’ demands for management participation and improved corporate governance, it is possible that the lawsuit challenges the legality of the share issuance process and management decisions. The company’s history of violating accounting standards in 2016 could further fuel market concerns regarding management transparency.
3. What’s the Impact on Stock Price? – Market Impact and Outlook
The lawsuit is likely to negatively impact investor sentiment and put downward pressure on the stock price in the short term. The future stock performance will depend on the outcome of the lawsuit and the company’s response. An unfavorable outcome could disrupt funding plans and worsen the financial structure, while a successful defense might mitigate the negative impact.
- Short-term Outlook: Continued downward pressure on stock price, investors taking a wait-and-see approach
- Mid-to-Long-term Outlook: Uncertainty remains, depending on the lawsuit’s outcome
4. What Should Investors Do? – Action Plan
Investors should carefully consider the progress of the lawsuit, the company’s response, its financial condition, and macroeconomic indicators before making investment decisions. Transparent and prompt information disclosure by YOM is crucial, and investors should closely monitor any updates.