[Featured Stock] 'Fire' Ahead of Serious Accident Punishment Act Enforcement... Ecopro BM Stock Plummets

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Due to the fire at EcoPro BM's factory in Cheongju, Chungbuk, on the 24th, the stock prices of both EcoPro BM and EcoPro have sharply declined.

As of 3:06 PM on the same day, EcoPro BM, a secondary battery materials company, was trading on the KOSPI market at 401,200 KRW, down 7.51% (32,500 KRW) from the previous day. EcoPro, the holding company of EcoPro BM, recorded 86,700 KRW, down 10.52% (13,000 KRW).

With the enforcement of the Serious Accident Punishment Act imminent, the fire has significantly dampened investor sentiment, leading to the sharp drop in their stock prices. The fire at the Ochang factory on the 21st resulted in one death and three injuries.

The Ministry of Employment and Labor ordered an indefinite suspension of work for the entire building where the fire occurred and has booked CEO A, who is responsible for safety and health management, along with the corporation, on charges of violating the Industrial Safety and Health Act.

On the same day, the company announced that it would halt the production of cathode materials for secondary batteries due to the fire at the Ochang factory. The company stated, "We plan to minimize damage by expanding production plans for CAM5 and CAM6 in the Pohang area and by early production of CAM5N within this year," adding, "We will promptly resume operations at the CAM4 factory based on the results of the fire investigation."

Furthermore, the company said, "The production capacity of the CAM4N factory, which was directly affected by the fire, will not have a significant impact considering the total production capacity planned for this year and the resumption of CAM4," and added, "The comprehensive property insurance currently subscribed to for the Ochang factory includes compensation for business interruption, with a coverage limit of approximately 185.8 billion KRW."