What Happened at SMCG?

On September 22, 2025, Yong-bae Kim, a close associate of SMCG’s largest shareholder, sold 50,000 shares (0.25%p) of the company. This slightly decreased the combined stake held by related parties, including CEO Seung-ho Choi, from 46.94% to 46.69%.

Why the Sale, and What’s the Market Impact?

The reason for Kim’s sale hasn’t been officially disclosed. While it could be for personal financial reasons, investors should consider various scenarios, including potential changes in management control. This sale could negatively impact SMCG’s stock price in the short term. Insider selling often creates uncertainty and dampens investor sentiment.

Is SMCG Still an Attractive Investment?

Despite the short-term risks, SMCG remains an attractive investment opportunity. In the first half of 2025, the company’s revenue and operating profit increased by 57.9% and 174.7% year-over-year, respectively, demonstrating robust growth. Positive factors include the K-Beauty boom, increasing demand for eco-friendly glass containers, and the expansion of the premium cosmetics market. The company’s financial structure has also improved since its KOSDAQ listing.

What Should Investors Do?

Investors considering SMCG should be aware of potential short-term price volatility. It’s crucial to carefully monitor the possibility of further share sales, potential management changes, and shifts in fundamental indicators. A long-term investment perspective is recommended. Pay close attention to any further sales by Kim, the company’s official stance on management control, and changes in key financial metrics.