Hanwha System and Hanwha Ocean are showing weakness in their stock prices after being designated as investment warning stocks on the 4th.

A booth of Hanwha Ocean, Hanwha System, and Hanwha Aerospace is installed at the international defense exhibition 'ADAS 2024' held in Manila, Philippines. /Courtesy of the Korea Defense Industry Association

As of 9:30 a.m. on the 4th, Hanwha System is trading at 55,400 won, down 4,500 won (7.51%) from the previous trading day. Hanwha Ocean is at 108,800 won, down 7.33%.

The Korea Exchange announced that it will designate Hanwha System, Hanwha Ocean, and Hanwha Solutions preferred stock, among seven stocks, as investment warning stocks on this day. Investment warning stocks are designated by the Market Surveillance Committee to prevent speculative or unfair trading.

Hanwha System and Hanwha Ocean are predicted to be designated as investment warning stocks due to a rapid increase in their stock prices over a short period. Investment warning stocks are designated when prices rise sharply in the short term. Once designated as investment warning stocks, margin trading is prohibited, and they are not recognized as substitute securities, leading to investment restrictions. If the stock price continues to rise, they may be designated as investment risk stocks.

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