Economic analyst Seon Dae-in will invest 3 billion won in the telecommunications equipment company Joongang Advanced Materials. Seon, who has 400,000 subscribers on YouTube, has previously introduced Joongang Advanced Materials to investors as a stock related to battery materials.
Seon ran for the mayoral primary of Yongin under the Democratic Party of Korea during the 2018 local elections, and it has recently been reported that he will participate as a planning advisory member in the Future Economic Growth Strategy Committee established by the Democratic Party of Korea. Joongang Advanced Materials surged 21.94% in a single day on the 15th after Seon's investment news categorized it as a political theme stock.
However, the Democratic Party has stated that it is not true that Seon is participating as a planning advisory member in the Future Economic Growth Strategy Committee. A party official noted, "Although it is true that he was initially mentioned as a participant, it was ultimately decided that he would not participate."
Joongang Advanced Materials announced on the 14th that it has decided to conduct a capital increase through a third-party allocation to secure 10 billion won for operating funds. In accordance with the capital increase, 2.76 million shares will be newly issued at 3,624 won each. The new shares will be listed on June 4 and will be subject to a one-year selling restriction after listing. Seventy percent of the newly issued shares will be allocated to Avenue Partners, while the remaining 30% will be allocated to Seon and his wife Kim Tae-hyun.
In this regard, Seon's side stated, "Joongang Advanced Materials is working with the electrolyte company Enchem to establish a joint venture called EDL to produce lithium salts, the raw materials for electrolytes," adding, "I saw it as a promising investment opportunity given that Joongang Advanced Materials' stock price has significantly declined since the second half of last year."
As Seon, who has actively recommended investing in secondary battery stocks alongside the author Park Soon-hyuk, known as 'The Man from Nowhere,' appeared, investors' interest became concentrated.
Additionally, the KOSDAQ market is already reacting sensitively to every movement of presidential candidates. As interpretations arise suggesting that Seon could be the 'brain' of candidate Lee Jae-myung in the economic sector, retail investors flocked to Joongang Advanced Materials.
He has identified Joongang Advanced Materials as a stock related to secondary batteries in videos posted on his YouTube channel. Last month, he communicated to his subscribers that Joongang Advanced Materials announced its intention to pursue lithium salt-related projects within the Saemangeum Industrial Complex at its shareholders meeting.
In response, Seon's side argued, "We have publicly stated our position against thematic stock investments multiple times," adding, "The claim that we intentionally invested in a political thematic stock is absurd." He stated, "Even if the stock price rises due to entanglement with political theme stocks, the funds will be locked for one year due to the protective custody, making the likelihood of gain extremely low."
However, contrary to Seon's explanation, experts noted that it seems ambiguous to classify Joongang Advanced Materials as a secondary battery-related stock based on the company's business content. Most notably, the revenue share from secondary battery-related businesses is minimal. As of last year, 95% of Joongang Advanced Materials' revenue came from the sales of construction materials and telecommunications equipment. Additionally, the revenue share generated by its materials distribution business, which involves purchasing and selling lithium salts, accounted for only 4%.
The company stated it plans to build a factory in the Saemangeum Industrial Complex to pursue its lithium salt business. If the plan proceeds as scheduled, construction must begin on the first phase at the Saemangeum site last year and go through three phases to be completed next year.
[Counter Report] <"This stock is promising" recommends an economic YouTuber who invested 3 billion won> related
Regarding this report, Seon Dae-in stated, "Joongang Advanced Materials is mentioned because it is pursuing the production of lithium salts, the raw materials for electrolytes, through the joint venture EDL established with the electrolyte manufacturing company Enchem. The timing of my being listed as a member of the Democratic Party of Korea's Future Economic Growth Strategy Committee was in October of last year when I had no idea about the possibility of an early presidential election, and the subscribed shares from this capital increase are restricted from sale for one year, making them highly volatile. Nevertheless, the suspicion that I intended to create Joongang Advanced Materials as a political thematic stock for personal profit is completely unfounded. Additionally, it is unfair to claim that it seems ambiguous to classify it as a secondary battery-related stock based solely on current revenue data, despite the joint venture EDL building a lithium salt production facility in Saemangeum." He also noted, "Although the article's title and content have been revised multiple times since the initial report, Seon Dae-in's claims have not been adequately reflected."
This report is in accordance with the adjustment of the Korea Press Arbitration Commission.