1. What Happened?: Kyung Nong’s Major Shareholder Increases Stake

On August 11, 2025, Kyung Nong’s CEO, Yongjin Lee, increased his stake by 0.22%p through a related party, bringing his total ownership to 67.03%. This move is interpreted as an attempt to strengthen his control over the company.

2. Why Does it Matter?: Management Stability and Shareholder Value

Increasing the major shareholder’s stake contributes to management stability and can positively influence long-term business planning and investment attraction. It can also be seen as a signal of management’s commitment to enhancing shareholder value.

  • Positive Aspects: Strengthened management control, securing long-term growth drivers
  • Negative/Cautionary Aspects: Sluggish Q1 2025 earnings, macroeconomic uncertainties, intensifying competition in the agricultural materials market

3. What’s Next?: Stock Price Forecast and Investment Strategy

Short-term stock price volatility is expected due to the stake change. However, in the mid-to-long term, expectations for management stability and growth strategies can positively impact the stock price. Considering the current undervaluation based on PER/PBR, there is a possibility of a re-evaluation of the company’s value. However, the sluggish Q1 2025 earnings and macroeconomic uncertainties should be considered when making investment decisions.

4. What Should Investors Do?: Careful Observation and Prudent Investment

Investors should closely monitor Kyung Nong’s future earnings announcements and the concretization of its business strategies. It’s crucial to assess the company’s strategies for dealing with changes in the macroeconomic environment. It is advisable to consider investments from a mid-to-long-term perspective rather than being swayed by short-term market fluctuations.