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Stocks plunged on ‘Destruction’ remarks… Shareholders anxious despite Jung Yong-jin’s takeover

Vice Chairman Jung Yong-jin’s controversial remarks about destruction have had an impact not only on the politicians but also on the stock market. Although Vice Chairman Chung started to evolve, the share price of Shinsegae Group companies and Shinsegae International also plummeted by more than 5%, resulting in a decrease in market capitalization of the two companies by more than 200 billion won in one day. Although Vice Chairman Chung started to evolve, the share price of Shinsegae Group companies fell sharply yesterday (10th).

This is reporter Im Tae-woo.

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Shinsegae shares, which once fell more than 8% in the stock market, eventually closed down 6.8%.

Shinsegae International, an affiliate of the company, also plummeted by more than 5%, and the market cap of the two companies decreased by more than 200 billion won in one day.

Shinsegae and Shinsegae International are running duty-free shops and cosmetics business in China with Vice Chairman Chung Yong-jin’s younger brother and Vice Chairman Jeong Yu-kyung as the de facto major shareholder.

However, it is analyzed that a recent article posted on the Internet by Vice Chairman Chung Yong-jin with the words ‘Destroyed’ to an article containing a picture of President Xi Jinping was accepted as a risk factor in the Chinese market.

It is quite different from the slight rise in the stock price of E-Mart, which has been focusing on domestic consumption since it closed its Chinese business five years ago.

Negative opinions on cosmetics and duty-free shops themselves also acted as a negative factor.

[증권업체 관계자 : (면세점·화장품 업계) 매출 감소 이슈가 좀 부각이 돼서 오늘 관련된 종목들이 다 급락을 한 것이기 때문에….]

Vice-Chairman Jeong deleted the post in question and explained that it was written about North Korea in the afternoon, and began to evolve.

[신세계그룹 관계자 : 중국 시장에 대해서 좀 관망하는 정도로 시장을 계속 예의주시하는, 이런 정도의 상황입니다.]

While there has been a debate among shareholders over whether it is freedom of expression or inappropriate behavior as a manager over the remarks of Vice Chairman Chung, the controversy is not expected to subside easily as Hong Kong’s leading media also begin to report on Vice Chairman Chung’s annihilation.

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