Shares of Dawonsys, a domestic railcar manufacturer, fell on the 22nd.
According to the Korea Exchange (KRX), as of 9:39 a.m. that day, Dawonsys was trading at 4,645 won, down 585 won (11.19%) from the previous trading day.
This is seen as investor sentiment weakening amid multiple conflicts surrounding Dawonsys in recent days. At the National Assembly's Land Infrastructure and Transport Committee audit of KORAIL, Korea National Railway, and SR Co. the day before, lawmakers continued to strongly criticize Dawonsys, which has been embroiled in controversy over unpaid delivery settlements.
Earlier, KORAIL signed contracts with Dawonsys in three tranches from 2018 to last year to purchase a total of 474 ITX-Maum (EMU 150) railcars for 914.9 billion won. However, delivery of a total of 218 cars out of the first 150 and second 208 cars has been delayed.
In addition, some shareholders voiced concerns about poor management after Dawonsys established its subsidiary Dawon Powertron, whose board composition and business purpose are almost identical to the company's.
The Minor Shareholders' Alliance submitted a petition last month to the presidential office and financial authorities, saying Dawonsys is heightening shareholder anxiety due to "railcar delivery delays and successive penalty for delay," "nonpayment to subcontractors," and "refusal to allow inspection of accounting books."