On the morning of the 25th, ILJEONG INDUSTRIAL shares hit the upper price limit. Investor sentiment appears to have improved on the news of a stock split.
At 9:41 a.m. that day, ILJEONG INDUSTRIAL was trading at 14,820 won on the Korea Exchange. It was up 3,430 won (30%) from the previous day, hitting the upper price limit (the top of the daily price band).
The buying spree appears to be driven by the stock split news. ILJEONG INDUSTRIAL disclosed on the 24th that it decided on a stock split to lower the par value from 5,000 won to 1,000 won per share. The purpose is to increase the number of shares in circulation, and the total number of shares outstanding will rise from 1.2 million to 6 million.
A stock split lowers a stock's par value by a set ratio and increases the number of shares in circulation accordingly. While the corporate value itself does not change, trading activity can pick up as the number of shares in circulation grows.