A Korea Exchange (KRX) main board-listed company, Haein(003010), became the butt of an absurd scene, getting tied to a "Yong Hyein theme stock" just because the names are the same. Right after the nomination of Minister of Gender Equality and Family nominee Yong Hyein, the share price fell nearly 25%, prompting online chatter about a "Yong Hyein curse," but Haein and the nominee Yong are said to have no direct connection in business or equity.
On the 3rd, according to the Korea Exchange (KRX), Haein closed at 9,770 won, up 250 won (2.63%) from the previous session. Opening at 9,730 won, the stock slipped to 8,760 won in early trading before surging to 10,710 won in the afternoon, showing high volatility.
The baffling "theme stock meme" emerged as the timing of the nominee Yong's selection coincided with Haein's share decline. Haein fell 2.29%, 13.08% and 11.61% from the 31st of last month to the 2nd of this month, respectively. The cumulative three-session drop reached 24.9%.
On online stock discussion boards, posts repeatedly called Haein a "Yong Hyein theme stock." Some internet users linked the share move to the nominee Yong, leaving posts such as "Yong Hyein's curse" and "limit-up if the appointment is pushed through."
But the only link between the two "Haeins" is the name.
Haein is a company that began in 1960 as "Haein Trading." The corporate name Haein (惠人) reflects a commitment to repay the grace received from customers and society and to practice people-centered management. It is a name used 30 years before the 1990-born nominee Yong was born. The nominee Yong's name uses the characters for "wise" (慧) and "benevolent" (仁).
The share trend has also moved independently of the nominee Yong. Haein's stock was in the low 4,000-won range until the end of July, but it surged steeply starting last month. From early Aug. to the 28th, the gain was about 195%, the highest among KOSPI-listed companies during that period.
Behind the spike was anticipation of rising demand for emergency generators as artificial intelligence (AI) data centers expand.
Haein is the official domestic dealer for global construction and mining equipment maker Caterpillar, selling engines, generators and more. As it became known that Caterpillar emergency generators were supplied to data centers of Samsung Electronics, SK, Naver and Kakao, the market spotlighted it as an AI data center-related stock.
Earnings improved as well. Haein's operating profit in the first half of this year was 8.4 billion won, up 58.7% from a year earlier. Of that, the power energy division's operating profit was 5.5 billion won, a 62.3% increase.
However, as the stock nearly tripled in a short period, volatility had already expanded significantly. Haein jumped 19.39% on the 11th of last month, hit the daily limit on the 14th and rose 14.34% on the 18th. In contrast, it plunged 12.72% on the 21st, then rebounded 14.36% on the 24th and 12.66% on the 26th, repeating double-digit swings.
Market alert measures also followed one after another. Haein was designated a short-term overheating stock last month, and single-price auctions at 30-minute intervals were applied for three sessions.
On the 18th of the same month, it was designated an investment warning stock. The exchange cited reasons including the share price rising more than 60% from five sessions earlier and setting the highest price over the most recent 15 sessions.
On the 2nd, it was removed from the investment warning list and designated as an investment caution stock for one day, but if the share price spikes again, it can be redesignated an investment warning stock. If redesignated, buyers must post 100% initial margin for delegated purchases, and margin financing-based buying will be restricted.
Earlier, on the 11th of last month, in response to a Korea Exchange (KRX) inquiry disclosure request related to the stock surge, Haein said, "There is no important disclosure currently in progress or finalized."