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LG Chem’s minority shareholders are angered by the company’s decision to split the battery business, prompting a panicky share sale. For two days starting on the 17th, when the battery business was split, individual investors sold LG Chem shares worth 266.2 billion won. LG Chem, which was hailed as a ‘secondary battery leader’ and a ‘national stock’ by individual investors, fell into a ‘traitor’ one morning.
With the hydrogen car industry in the spotlight after the coronavirus outbreak, LG Chem, a leader in the battery industry, which is a rear-end industry, started to skyrocket. The stock price, which was 280,000 won on March 19, which was the annual low of the KOSPI, rose 174% to 768,000 won through the 15th. During the same period, LG Chem’s market capitalization jumped from 16.24 billion won (eighth place) to 51.2 billion won (fourth place). It was an individual investor who raised the price of LG Chem shares. During this period, while foreigners and institutions sold LG Chem shares worth 920 billion won and 60 billion won, respectively, individuals bought 960 billion won worth of money.
However, the news that LG Chem will split the battery business and launch a new corporation ‘LG Energy Solution (tentative name)’ in December, spread on the 16th and several online value communities were canceled. There was a flood of writings saying, “I invested in LG Chem looking only at the battery, but it was as if I was ripped off.” There were also analogies like “I ordered chicken, but only radish chicken was delivered” and “I bought Big Hit stock, but BTS (BTS) pulled out.” On the Blue House notice board, a petition to “prevent the division of LG Chem’s battery business” was posted and almost 7,000 consents were received in two days.
LG Chem’s share price also fluctuated. It fell 5.37% on the 16th, followed by an additional 6.11% on the 17th. In particular, on the 17th, individual investors sold LG Chem shares worth 145.84 billion won. On the 18th, the purchase of taxes from foreigners (137.8 billion won) and institutions (22.2 billion won) came in, and the stock price rose 3.26% to 666,000 won, but individuals sold 117.74 billion won worth of value at the regular market close.
