Hanyang Securities' stock price is rebounding in early trading. The company's explanation that it can recover most of its exposure related to JoongAng Ilbo and JTBC within this year has improved investor sentiment.
According to the Korea Exchange on June 18, at 10:08 a.m., Hanyang Securities shares were trading at 20,650 won, up 2.74% (550 won) from the previous trading day.
Previously, Hanyang Securities' stock price had plummeted by 16% the day before. Concerns among investors grew due to analyses indicating a relatively large amount of credit exposure related to affiliates of Central Group, which recently filed for corporate rehabilitation.
In a press release on June 17, Hanyang Securities stated, "The recovery of 84 billion won related to JoongAng Ilbo and JTBC exposure is proceeding as planned, and our financial soundness remains stable."
While fears spread that the corporate rehabilitation filing by Central Group affiliates could lead to losses on related exposures, Hanyang Securities' announcement of a significant recovery plan appears to have somewhat restored investor confidence. The company maintains that the impact of related exposures on its financial soundness is limited.
Hanyang Securities also projected that the cumulative recovery amount would expand to 73.1 billion won by the end of this year, which corresponds to about 87% of the total exposure. The company expects to recover the remaining amount by February of next year.
* This article has been translated by AI.
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