1. What Happened?: Dongjin Semichem Divests 30% Stake in Overseas Subsidiary

On September 1, 2025, Dongjin Semichem announced its decision to divest 30% of its stake in a specific overseas subsidiary for ₩124.1 billion. The expected disposal date is May 31, 2026.

2. Why This Decision?: Investment Recovery and China Joint Venture

This divestment aims to recover the initial investment and secure funds for a joint venture in the Chinese display materials market. Dongjin Semichem’s strategy is to strengthen its presence and secure future growth engines in the Chinese market.

3. What’s Next?: Improved Financial Structure and Growth Momentum Expected

  • Financial Impact: The influx of ₩124.1 billion is expected to significantly improve the financial structure, solidifying the foundation for future investments and business expansion.
  • Business Impact: The China joint venture is expected to enhance competitiveness in the display materials market and secure new growth engines. However, the success of the joint venture needs careful consideration.
  • Stock Price Impact: A short-term stock price increase is expected due to the positive assessment of the investment recovery. However, the mid-to-long-term stock price trend will depend on the performance of the joint venture.

4. Investor Action Plan: Key Investment Points to Check

  • Analyze Growth Potential of China Joint Venture: Evaluate the potential for success by analyzing the specifics of the joint venture, competitive landscape, and market outlook.
  • Confirm Use of Divested Funds: Check the specific plans for utilizing the recovered funds and assess their alignment with the company’s long-term growth strategy.
  • Monitor Macroeconomic and Industry Trends: Continuously monitor macroeconomic variables such as exchange rates, interest rates, and raw material prices, along with trends in the display industry.