Kakao Games, Hangul and Computer, Hive, etc. "Executives Sell Shares to Realize Profits"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] Recently, some executives and special related parties of major shareholders of certain NFT (Non-Fungible Token) and metaverse-related companies, whose stock prices have surged sharply, have consecutively sold shares to realize profits.

According to the Financial Supervisory Service's electronic disclosure system on the 28th, Yoon Seok-jun, CEO of HYBE America, exercised stock options on June 24 and July 14 to acquire a total of 120,000 HYBE shares at 1,062 KRW per share. Subsequently, on the 16th of this month (based on settlement date), he sold 40,137 shares on the market at 414,527 KRW per share, and on the 17th, sold 19,863 shares at 414,086 KRW per share. The total profit realized by CEO Yoon from exercising stock options and selling shares amounts to approximately 24.73542 billion KRW.

HYBE's stock price surged sharply after announcing its entry into the NFT business earlier this month, continuously hitting new highs. CEO Yoon sold shares at prices close to the record intraday high of 421,500 KRW recorded on the 17th. After peaking, HYBE entered a "breather" phase, with the closing price on the 26th falling back to the 370,000 KRW range.

Hermes Holdings Ltd., a special related party and major shareholder of Hancom, sold all of its 433,784 shares (1.72% stake) on the 18th at 29,883 KRW per share on the market. The total value of Hancom shares disposed of by Hermes Holdings was approximately 12.96 billion KRW. Additionally, Lee Chang-joo, an unregistered executive director of Hancom, sold 3,000 shares on the 19th at 30,000 KRW per share on the market. The value of the sold shares was 90 million KRW.

Hancom, linked to the metaverse sector, continued its high-flying trend after closing at the daily limit price of 28,400 KRW on the 17th. The news of establishing a joint venture with Cyworld Z to open and operate the metaverse ecosystem-based "Cyworld-Hancom Town," integrating NFTs into its operations, was a positive catalyst.

Kakao Games CEO Namgung Hoon sold 1,040 shares of the company on the market at 95,900 KRW per share on the 9th, following the announcement of its NFT business progress. He converted approximately 99.74 million KRW into cash, reducing his stake from 3.3% to 3.23%. Kakao Games announced plans to develop an NFT exchange when releasing its Q3 earnings on the 3rd of this month. Supported by this, the stock price soared from 79,800 KRW at the end of October to an intraday high of 116,000 KRW on the 17th.

Executives of Vibe Company, a metaverse platform developer, began selling shares consecutively this month after the one-year lock-up period for employee stock ownership ended following its listing on October 28 last year. Park So-ah, Executive Director (4,000 KRW, 2,000 shares), Ahn Chang-won, Director (47,495 KRW, 1,700 shares), Lee Do-kyung, Director (65,400 KRW, 500 shares), and Park Sung-gong, Director (45,440 KRW, 500 shares; 56,200 KRW, 200 shares) sold shares on the market. The total value of shares sold by these four individuals amounts to approximately 227.38 million KRW.

Vibe Company's stock price started rising from the low 30,000 KRW range early last month and surged sharply this month riding the metaverse boom, reaching an intraday high of 68,700 KRW on the 18th.

In the stock market, it is common for major shareholders, special related parties, or executives to dispose of shares and realize capital gains when a stock experiences positive news or is linked to a hot theme and surges. However, the market generally interprets stock sales by major shareholders or executives, who are well aware of the company's management situation, as negative signals. In many cases, stock prices decline after major shareholders or executives dispose of their stakes.