[Featured Stock] EcoPro BM Down 3% Following ‘Ochanggongjang Fire’

[Asia Economy Reporter Minji Lee] EcoPro BM is experiencing an approximately 3% correction due to a fire at its Ochang plant.

At 9:15 AM on the 24th, EcoPro BM was trading at 417,100 KRW on the KOSDAQ market, down 3.85% from the previous trading day. It is estimated that the fire news at the Ochang plant on the 21st affected investor sentiment.

On the 21st, a fire broke out at the six-story EcoPro BM plant in Ochang-eup, Cheongju-si, Chungcheongbuk-do. The fire resulted in one death and three injuries. Following the accident news, EcoPro BM's stock price fell more than 7% in after-hours trading after market close. Consequently, concerns were raised that the stock price could undergo a significant correction after the market opened that day.

However, news that the impact on the production line would be limited has restrained the early market decline. The stock price, which had fallen to 406,500 KRW after the market opened, is currently trading around 420,000 KRW.

Jonghyung Lee, a researcher at Kiwoom Securities, stated, “EcoPro BM has factories in two locations: Ochang in Chungbuk and Pohang in Gyeongbuk. All expansions of cathode materials for electric vehicles (EV) are being carried out at the Pohang plant. The Ochang plant mainly focuses on NCA cathode materials used in small appliances, and the fire occurred on the 4th to 6th floors, which are spaces used as boiler rooms and break rooms, so the damage to the production line is expected to be limited.”