1. What Happened?

On September 22, 2025, Kim Namheon, a major shareholder of VMware, sold 1,600,000 shares, representing 6.24% of his 11.20% stake, through an after-hours block trade. This reduced his stake to 4.96%.

2. Why the Sell-off?

While the official reason for the sale was reported as achieving ‘general investment’ objectives, this substantial sell-off by a major shareholder, especially a former majority holder like Kim Namheon, raises various speculations among investors. It could be simple profit-taking, internal corporate matters, or a change in personal investment strategy. Past litigation history with the former majority shareholder also adds to market unease.

3. What’s VMware’s Current Situation?

VMware has shown consistent revenue growth since 2022 and is expected to turn profitable in 2024. The company is also actively investing in R&D to secure future growth engines. However, the relatively high debt ratio requires attention.

  • Revenue: KRW 48.6B (2022) → KRW 74.1B (2023) → KRW 107.8B (2024 projected)
  • Operating Income: KRW -16.1B (2022) → KRW -2.0B (2023) → KRW 2.4B (2024 projected)
  • Net Profit Margin: 2.16% (2023) → 4.90% (2024 projected) → 7.38% (2025 projected)
  • Debt Ratio: 223% (2023) → 267% (2024 projected)

4. What’s Next? Investment Strategies

Kim Namheon’s massive sale may negatively impact the stock price in the short term. However, considering VMware’s solid fundamentals, this could present a buying opportunity. Consider the following investment strategies:

  • Monitor Fundamentals: Continuously check key indicators like sales, operating profit, and new orders.
  • Observe Major Shareholder Activities: Further stake changes may indicate potential management changes.
  • Utilize Short-term Volatility: Look for buying opportunities during price dips.
  • Monitor Macroeconomic Conditions: Keep an eye on interest rates, exchange rates, and overall semiconductor industry trends.

Caution: Investment decisions should always be made carefully and at your own discretion. This analysis is not investment advice, and all investment responsibility lies with the individual investor.