As Kumyang's funding plan, critical to averting delisting, has been postponed three times, attention is focusing on why the minority shareholder alliance is not putting strong pressure on management by comparison.
Reasons cited include the relatively large number of shareholders who view Kumyang's future optimistically compared with other corporations facing delisting, and the fact that early investors with very low purchase prices are leading minority shareholder sentiment.
According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) on the 7th, Kumyang postponed the payment date for a third-party allotment capital increase by one month from Sept. 17 to Oct. 17. This is the third time Kumyang has changed the payment date.
In Jun., Kumyang announced it would raise 405 billion won by issuing new shares to Saudi Arabian corporations "Skyve Trading & Investment (Skyve)." Of that, 250 billion won would go toward completing a secondary battery plant, and the remaining 155 billion won would be invested in battery equipment, according to its blueprint.
But no money has come into the company, and only the reasons have changed. On Aug. 1, when it first changed the payment date, Kumyang explained in a notice that "unexpected additional delays occurred during the overseas remittance process." On Sept. 3, when it announced the second delay, it said, "The process of remitting Saudi Arabian funds to Korea did not proceed smoothly."
Then on Sept. 17, it said, "To receive the investment payment, we have been making daily calls and holding meetings with local working-level staff, doing our best to ensure the remittance to Korea proceeds smoothly," and added, "The investor reiterated its intention to definitely invest in Kumyang and presented an adjusted schedule."
Kumyang has been suspended from trading since Mar. after its external auditor issued a "disclaimer of opinion." However, Kumyang's minority shareholders, reportedly about 240,000, are not immediately moving to take collective action.
About 3,000 Kumyang shareholders have gathered on the minority shareholder platform "ACT," and there are also four to five KakaoTalk group chats formed by Kumyang shareholders, but rather than taking action, they are only "closely watching" the situation.
The Kumyang minority shareholder alliance is said to be prioritizing a meeting with Kumyang Chair Ryu Gwang-ji for now. This contrasts with other listed companies' minority shareholders facing delisting risk, who have staged "truck protests" in front of the Korea Exchange or moved to convene an extraordinary shareholders' meeting by further increasing their equity stakes.
Industry figures also call it an unusual case. A source in the financial investment industry said, "Kumyang is different from the usual minority shareholder alliances that fight management and actively shape public opinion," adding, "They appear to have strong faith in management."
Some say it is because the stock's decline has been so steep. Boosted by the secondary battery boom, Kumyang's share price soared intraday to 194,000 won in 2023. But it later plunged, and before the transaction suspension the share price was only 9,900 won.
Among 4,620 Kumyang investors linked to Naver Pay's "My assets service," the average loss rate is 84.99%. Their average purchase price per share is 65,964 won. Unless this capital increase succeeds and turns the company around, the losses will be impossible to recoup.
A private banker (PB) at a securities firm said, "Clients who bought Kumyang purchased at 140,000–150,000 won, but the share price has fallen so much now that they are in a state of despair."
Even so, sentiment within the minority shareholder alliance is being led by early investors with firm confidence in Kumyang. The issue is that their average purchase prices are very low. When Kumyang was first included among secondary battery stocks, the share price was only about 4,000–5,000 won. Even if it is delisted now, they can still take profits. In relative terms, they can afford to wait patiently.
Of course, most investors are at their wits' end. One Kumyang shareholder said, "There is no clear solution," adding, "Instead of demanding precise materials related to the capital increase, the minority shareholder alliance is only passing along hopeful stories explained by management."