Once a leader in the domestic PC market alongside Samsung Electronics and Sambo Computer, Juyun Tech has fallen to a 'penny stock' with its share price dropping below 1,000 won. Last month, a movement to revive domestic brands gained traction among online investor communities, causing a brief surge in stock prices, but the upward trend was short-lived. The stock has since retreated to the 800 won range, while the largest shareholder has invested 1 billion won of personal funds to increase their stake.
According to the Korea Exchange, Juyun Tech closed at 820 won on the previous trading day, August 10. Its market capitalization stands at 10.6 billion won, significantly below its par value of 1,000 won and down 72.4% from its 52-week high of 2,970 won.
Last month, interest in domestic PC brands surged, leading to Juyun Tech being labeled a 'patriotic theme stock.' The share price jumped from 834 won on July 9 to 1,352 won on July 20, a 62.1% increase. It even peaked at 1,493 won during intraday trading on July 23.
However, profit-taking from the rapid increase led to a swift decline. The closing price on July 23 fell to 1,096 won, followed by drops to 953 won on July 24 and 846 won on July 28. This month, the stock has remained around 800 won, dipping to 785 won on August 7 before a slight rebound to 820 won on August 10.
Juyun Tech was once a representative of the first generation of domestic PC companies, gaining fame as the 'People's PC' and competing with Samsung Electronics and Sambo Computer. However, as market competition intensified, it could not maintain its former status. Its current market capitalization has shrunk to around 10 billion won.
Amid ongoing poor stock performance, the largest shareholder has injected personal funds. According to the Financial Supervisory Service's electronic disclosure system, the largest shareholder, Hwapyeong Holdings, acquired an additional 1 million common shares of Juyun Tech through a third-party allocation capital increase on July 30. The acquisition price was set at 1,000 won per share, totaling 1 billion won, funded entirely by Hwapyeong Holdings' own resources.
As a result of this capital increase, Hwapyeong Holdings' stake in Juyun Tech rose from 2,854,583 shares to 3,854,583 shares. Its ownership percentage increased from 22.14% to 27.74%, a rise of 5.60 percentage points.
The stake held by the largest shareholder and related parties also expanded. The shares held by Hwapyeong Holdings and five related parties increased from 4,497,631 shares to 5,497,631 shares, adding 1 million shares. Consequently, the total ownership percentage rose from 34.88% to 39.56%. The stated purpose of the stock acquisition is 'to influence management and participate in management.'
Juyun Tech stated, 'We are strengthening our management base and expanding our funds through the largest shareholder's participation in the capital increase.' With Hwapyeong Holdings injecting 1 billion won directly, the key question remains whether Juyun Tech, once known as the 'People's PC,' can leverage this financial support to recover its performance and corporate value.
* This article has been translated by AI.
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