"Hyunsan Jupjup Boon" vs "Why This Stock..." Tragedy Stock 'Plummets' Trading... Some Criticism Too

HDC Hyundai Development Company Stock Plummets After Apartment Collapse
1 Dead, 6 Missing
Some Individual Investors See "Buying Opportunity"
Criticism Over Profit Focus Amid Tragedy

HDC Hyundai Development Company Building, Yongsan-gu, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] "Is it a crime to be interested in stock prices?" , "It is true that it doesn't look desirable."

After the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju, the stock price of HDC Hyundai Development Company (Hyundai Development) has been plummeting day by day, and some are taking this as a buying opportunity at a low price. They plan to maximize profits through continuous investment as the stock price keeps falling.

However, some criticize this as merely an attempt to increase their own wealth amid the mourning atmosphere. While it is possible to engage in financial investment in a capitalist society, it is pointed out that trading this particular stock right now lacks human decency.

On Friday the 21st, in the KOSPI market, Hyundai Development closed at 14,200 won, down 7.79% from the previous trading day. During the session, the stock price fell to 14,050 won, setting a new 52-week low.

The stock price plunged more than 19% the day after the collapse accident on the 12th. Between the 12th and 21st, the stock price dropped by 44.8%. Hyundai Development's market capitalization (935.9 billion won) fell below 1 trillion won.

In this situation, some office workers investing in stocks see it as a low-price buying opportunity. When the stock price continues to decline, they can buy and sell stocks after making some profit.

Seoul Hyundai Development Company Headquarters. [Photo by Yonhap News]

A man in his 30s, Kim, who said he is usually interested in stock investment, stated, "The collapse accident itself is obviously tragic," but added, "However, stocks are stocks." He continued, "Criticizing people who invest in stocks because of disasters or accidents shows a lack of proper understanding of the capital market."

There are opposing views as well. While it is not that the stock market is incomprehensible, some question whether it is necessary to invest in this particular stock to make a profit. Another office worker in his 30s, Kim, said, "Choosing to buy this stock seems somewhat lacking in humanity." He emphasized, "Ultimately, investment is a personal choice, but I hope people don’t boast about their profits. They should think about the victims."

Similar controversies have arisen when stock prices fall due to natural disasters or accidents. On March 19 last year, the domestic stock market was literally hit by the 'Corona Shock.' The World Health Organization (WHO) declared COVID-19 a 'pandemic,' and a week later, the KOSPI index plunged 8.39% to close at 1,457.64.

At that time, there was controversy between individual investors asking for recommendations on bio-related stocks while citizens were collapsing due to COVID-19 infections and those criticizing such requests.

Meanwhile, Hyundai Development succeeded in rebounding for the first time in 10 trading days after the collapse accident on the 11th. As of 9:35 a.m. on the 24th, Hyundai Development’s stock price rose 2.82% from the previous trading day to 14,600 won.

During the session, the stock price rose as high as 14,950 won. From the day of the accident (the 11th) to the 21st, Hyundai Development’s stock price plunged 45%. The market capitalization lost during this period was 761.2 billion won. One worker died at the site due to the accident, and six remain missing.