O Se-hoon, the mayor of Seoul, was acquitted in his appeal regarding violations of the Political Fund Law, leading to a surge in related theme stocks. Stocks that had been declining earlier in the day skyrocketed immediately after the verdict, drawing significant investor interest.
According to the Korea Exchange, as of 3:11 PM, Jin Yang Chemical was trading at 2,360 won, up 542 won (29.81%) from the previous trading day. The stock, which had been on a downward trend in the morning, hit its upper price limit shortly after the announcement of Mayor O's acquittal.
At the same time, Jin Yang Industry (up 29.79%) and Jin Yang Poly (up 29.33%) also reached their upper price limits. These stocks have been categorized as political theme stocks due to their connection with Yang Jun-young, chairman of Jin Yang Holdings, who is an alumnus of Korea University alongside Mayor O.
On this day, the 7th Criminal Division of the Seoul High Court, presided over by Judge Koo Hoe-geun, overturned the first-instance ruling that had imposed a fine of 10 million won on Mayor O for violations of the Political Fund Law, declaring him not guilty. As a result, Mayor O has temporarily avoided the risk of losing his position.
The court found that the key evidence in the case, the testimony of Myung Tae-kyun, lacked consistency and credibility. Some parts of his testimony did not align with objective circumstances, making it difficult to substantiate the charges based on that evidence.
This surge in stock prices is interpreted as a reflection of changing investor sentiment influenced more by the outcome of a politician's trial than by corporate performance or business results.
* This article has been translated by AI.
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