Coway rose sharply early on the 7th. Buying is seen flocking to the stock on news that its largest shareholder, Netmarble, purchased additional Coway equity.
As of 9:30 a.m. on the 7th, Coway was trading on the Korea Exchange at 77,500 won, up 5,100 won (7.04%) from the previous session.
According to the Financial Supervisory Service's electronic disclosure system, after the close of regular trading the previous day, Netmarble disclosed that it plans to buy Coway shares on the open market over the next year for a total of 150 billion won.
The first share purchase, worth 40 billion won, is scheduled to run for about one month from May 7 to June 5.
As of the end of last year, Netmarble held 25.74% of Coway equity. If the planned 150 billion won purchase is completed, the equity stake will rise to 29.1%.
Netmarble said, "This share purchase is a strategic investment that can achieve two goals at the same time: stabilizing the governance structure and improving financial soundness," and noted, "By using part of the proceeds from monetizing investment assets, there will be no impact on the core gaming business."