Sewon Cellontech Clarifies Misunderstanding on Major Shareholder Stake Sale: "Decrease Due to Exclusion of Related Parties in Management Change Process"

[Asia Economy Reporter Yoo Hyun-seok] Sewon Cellontech recently clarified on the 25th that the temporary stock price decline was not due to stock sales by the former management.

A company official stated, "On the 8th, due to the change in management, Jang Jeong-ho and two others were excluded from the largest shareholder special relationship group, causing a slight decrease in the largest shareholder's stake, but the former management did not sell their shares. Some shareholders are mistakenly interpreting the decrease in the largest shareholder's stake as a sale of shares and are selling their stocks, which is a concerning situation." He added, "Since the recent management change of Sewon Cellontech and its parent company SC Engineering was successfully completed, the chemical equipment and precision machinery businesses Sewon Cellontech is pursuing are expected to proceed without any setbacks."

On the 8th, CEO Jang Jeong-ho resigned for personal reasons, and the new CEO Lee Jong-in was appointed, establishing a co-CEO system with Yoo Seung-joo and Lee Jong-in at Sewon Cellontech. The appointment of the new board members was also completed through an extraordinary general meeting of shareholders.

Due to the management change, former largest shareholders and special related parties Jang Jeong-ho, SC Value Research, and Kwak No-seon were excluded from the special related parties, resulting in a change in Sewon Cellontech's largest shareholder and special related party stake from 30.57% to 24.71%.

Sewon Cellontech is a company engaged in chemical equipment and precision machinery businesses, collaborating with the comprehensive engineering specialist company SC Engineering to supply reactors, pressure vessels, heat exchangers, hydraulic equipment, and more, which are applied to various industrial plants.