Shares are soaring on news of a management rights dispute with Super Ant Hwacheon Machinery

The stock price, mired in a management dispute, is skyrocketing.

As of 9:19 am on the 20th, Hwacheon Machinery is trading at 5,250 won, an increase of 1210 won (29.95%) from the previous trading day. After closing the trade at the previous day’s high, it continued to rise sharply.

The increase in the dispute over management rights between the owner’s family and the big ant appears to be fueling the stock price.

Earlier, on the 11th of last month, Boas Asset CEO Kim Seong-jin filed a lawsuit to allow an extraordinary general meeting of shareholders on the 11th of last month to distribute 69.3 billion won (3,500 per share) out of 103.4 billion earned in retained earnings owned by Hwacheon Machinery.

Boas’ stake in Hwacheon Machinery, including CEO Kim Seong-jin, is 10.43%, making it the second largest shareholder after the largest shareholder with a stake of 34.54%.

After buying a 10% stake in Hwacheon Machinery in April, CEO Kim filed a management rights dispute with the Seoul Central District Court in July seeking permission to hold an extraordinary general meeting to appoint him and six officers executive of Boas Asset.

Meanwhile, Hwacheon Machinery is a specialized machine tool company that manufactures and sells general purpose machine tools and sells CNC machine tools supplied by Hwacheon Machine Tools domestically. It processes and supplies cylinder blocks to Hyundai and Kia.

Reporter Eunji Cha, Hankyung.com chachacha@hankyung.com

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