The aftermath of President Yoon Suk Yeol's declaration of martial law is leading to a political impeachment situation, bringing AhnLab into the spotlight as a political theme stock. AhnLab, connected to the founding member and largest shareholder, Ahn Cheol-soo, a member of the People Power Party, has seen its stock price surge and fall recently. This trend is causing burden within AhnLab as it is unrelated to the company's core business.
◇ AhnLab's stock price fluctuating with surges and declines
According to the Korea Exchange on the 10th, as of 1:30 p.m. that day, AhnLab's stock price was 79,200 won, down 3.41% from the previous day. On the 4th, AhnLab's stock price rose 7.58% in a single day due to interest in Ahn's potential candidacy for the next presidential election following the lifting of martial law. Ahn garnered attention within the ruling party by stating, 'The president must resign voluntarily,' reflecting expectations for the upcoming presidential election.
However, on the 5th, the stock price again dropped by over 6% due to the People Power Party adopting the rejection of the impeachment bill as its party line. Following this, on the 9th, as Ahn participated in the vote for President Yoon's impeachment motion, AhnLab's stock price soared by 20.52%, reaching as high as 80,400 won during trading. Ahn holds a 16.72% stake as the largest shareholder, and with the Donggra Foundation, which holds an additional 8.99%, the total equity amounts to 25.71%.
Internally, AhnLab is concerned that the fluctuations in stock price driven by political expectations may hinder the establishment of trust in its security business. AhnLab, a leader in the domestic security market, is seeking to expand its business into the Middle East and North Africa, but political issues may overshadow its core business competitiveness.
In particular, AhnLab has actively entered the Middle East market, having established a joint venture named Rakeen with Site Ventures Company, a security firm owned by the Saudi sovereign wealth funds, last October. Currently, Site is the second-largest shareholder, holding a 10% stake in AhnLab. Despite steady increases in performance, the company is undervalued in the market as it is not covered by major securities research.
From AhnLab's perspective, the volatility in stock price due to its status as a political theme stock raises concerns that it might undermine trust in its security business and could obstruct long-term business partnerships in the global market.
◇ 'Difficult to predict in a special political environment'
Opinions regarding stock price volatility are divided in AhnLab's discussion boards. Some investors positively assess Ahn's political standing and express optimism, while others point out that 'the fluctuations are larger due to investors flocking in driven more by political expectations than the company's performance or growth potential.'
In the past, AhnLab also repeatedly experienced surges and declines in stock price in tandem with Ahn's political activities. When he announced his candidacy for the presidency in 2012, the stock price nearly tripled in a short period, and a similar trend was observed during the 2017 and 2022 presidential election seasons. Analysts believe that amid the impeachment situation, the potential for an early presidential election is likely to see AhnLab repeating similar patterns once again.
A researcher from a securities firm, who requested anonymity, noted, 'Currently, AhnLab's stock price is heavily affected by Ahn's activities and the political situation, making it difficult to predict.' He added, 'The current surge is rooted in a special political environment, so there is a high possibility of a sharp decline if the situation changes.'