What Happened?

Chungdam Mayhills New Technology Association reduced its stake in Metacare from 10.66% to 7.08%, a decrease of 3.58%p, through on-market sales on September 18, 2025. They sold 4,255,000 shares at an average price of KRW 392 per share.

Why Did They Sell?

The official reason for the sale was stated as achieving the objective of ‘simple investment.’ However, market concerns are rising regarding Metacare’s financial risks, including its high debt ratio and accumulated deficit. While Metacare is striving to secure growth momentum through business diversification, uncertainties surrounding new businesses also exist.

So, What Will Happen to Metacare’s Stock Price?

  • Short-term Impact: The large sale is likely to put downward pressure on the stock price. Supply and demand imbalances may occur, and investor sentiment could be negatively affected.
  • Long-term Impact: The stock’s direction will depend on Metacare’s core business growth, the performance of new businesses, and the overall market environment.
  • Opportunity: If Metacare’s fundamentals are solid and growth potential is high, this stake sale could present a buying opportunity.

What Should Investors Do?

Hasty investment decisions should be avoided. Carefully consider the following:

  • The possibility of further sales by the selling entity
  • Stake changes by institutional investors and foreigners
  • Metacare management’s response
  • Whether the performance of new businesses becomes visible
  • The overall market environment (interest rates, exchange rates, competitive landscape)

Making investment decisions through thorough analysis is crucial. This report is for informational purposes only, and the responsibility for investment decisions rests solely with the investor.