Share Transfer - Korea Stock Market Insights

1. Kumyang Green Power Share Transfer: What Happened?

Lee Yoon-chul transferred a total of 1,513,120 shares to his children. While this reduced his individual stake, the total stake held by related parties remains unchanged at 59.46%, ensuring no impact on management control. However, this could signal the beginning of a long-term succession plan.

2. Why the Transfer?: Analyzing the Background and Implications

This transfer is interpreted as a strategy for inheritance tax reduction and management succession. By transferring shares in advance, potential tax burdens during future inheritance can be mitigated. Distributing shares among his children could also aim to secure stable management control.

3. Impact on Stock Price

Short-term: The transfer itself has no direct impact on the company’s fundamentals, so significant stock price fluctuations are unlikely. However, market concerns regarding gift taxes and potential future share sales may arise.

Long-term: The children’s participation in management is a key variable. Active involvement and innovative strategies to secure new growth engines could have a positive impact. Conversely, focusing on profit-taking through share sales could negatively affect the stock price.

4. Investor Action Plan

Short-term investors: Closely monitor market reactions and any issues related to share sales.
Long-term investors: Focus on the new shareholders’ willingness to participate in management, announced business plans, and Kumyang Green Power’s fundamental improvements.

5. The Future of Kumyang Green Power

Kumyang Green Power has growth potential through its expansion into renewable energy, but currently faces challenges like sluggish performance and deteriorating financial health. This share transfer can be seen as the first step in management succession, and the capabilities of the new management and the company’s efforts to improve performance will determine its future value.

What Happened?

On September 5, 2025, Hanjung NCS CEO Kim Hwan-sik and Oh Seung-ah transferred 1,800,000 and 200,000 shares, respectively, to Kim Sang-gyun. This resulted in a slight decrease in total ownership from 35.49% to 35.47%.

Why Does it Matter?

Hanjung NCS has been struggling with sluggish performance in the first half of 2025. Sales decreased by 6.4% year-on-year, and both operating profit and net income recorded losses. This share transfer under such circumstances could raise concerns among investors. However, the transfer can be interpreted as suggesting the possibility of future management succession or role sharing by increasing Kim Sang-gyun’s stake, rather than a change in management control.

What’s Next?

The share transfer itself is unlikely to directly impact the stock price. However, it can be seen as a sign of the owner family’s commitment to long-term management. Future stock price movements are expected to depend on fundamentals such as earnings improvement and performance in the North American ESS market.

What Should Investors Do?

Investors should focus on the company’s fundamental improvements and long-term growth potential rather than short-term stock price fluctuations. While the growth of the ESS and EV markets and the strengthening of eco-friendly policies can be positive factors for Hanjung NCS, raw material price volatility and intensifying competition pose risks. Therefore, careful analysis is required before making investment decisions.