GS Retail CI. /Courtesy of GS Retail

On the first day of trading resumption following the partitioning of personnel, GS Retail's stock price has dropped more than 9% on the 23rd.

According to the Korea Exchange on the 23rd, as of 10:07 a.m., GS Retail's stock price recorded 17,900 won, down 9.6% from the reference price of 19,800 won.

On that day, GS Retail's stock price even fell to 16,200 won during trading, marking the lowest price in history.

The partitioning of GS Retail led to the decline in stock prices on that day. In June, GS Retail partitioned into GS Retail (retail business) and GS P&L (hotel business), resuming transactions on that day.

The company explained that although each division, including convenience stores, home shopping, supermarkets, and hotels, is performing well, it decided to partition because its corporate value was undervalued compared to competitors due to a complicated business structure.

However, it is reported that GS Retail's convenience store growth rates were 2% in October, 3% in November, and around 1% in mid-December. Additionally, an increase in expenses like depreciation and promotional costs is expected to worsen performance.

Seo Hyun-jeong, a researcher at Hana Securities, noted, 'Given the pre-partition benchmark stock price of 23,000 won, the potential for an increase seems low,' adding that 'profit visibility has declined due to lower margins in the convenience store sector and uncertainties in development and other sectors.'

Meanwhile, the partitioned GS P&L is being traded at 26,400 won, down 12.29% from the reference price of 30,100 won.