What’s Happening?

Since late 2023, CCS has been embroiled in turmoil due to issues surrounding changes in major shareholders. Failure to obtain approval for the change of largest shareholder under the Broadcasting Act has resulted in corrective orders, administrative sanctions, and ongoing lawsuits. Furthermore, CCS has been designated as a managed stock due to inaccurate disclosures, and recently, a lawsuit demanding the return of shares has been filed against a related party of the major shareholder.

What are the root causes of these issues?

The fundamental problem is the management dispute. The failure to properly comply with legal procedures during the change of major shareholders has triggered a series of problems. This, coupled with poor performance in core businesses and deteriorating financial structure, has significantly undermined the company’s stability.

So, What’s Next?

  • Increased Management Uncertainty: The ongoing management dispute and the outcome of the lawsuit will further increase uncertainty in the management environment.
  • Higher Risk of Delisting: The lawsuit following the managed stock designation increases the likelihood of delisting.
  • Worsening Financial Situation: Unexpected expenses, such as litigation costs, could further deteriorate the financial soundness of the company.

What Should Investors Do?

CCS currently carries a very high investment risk. New investments should be absolutely avoided, and existing investors must act cautiously, recognizing the low probability of recovering their investments. Investors need to continuously monitor relevant information, such as the outcome of the lawsuit and whether the managed stock designation is lifted, and consider the possibility of delisting in the worst-case scenario.