[Special Stock] Skin&Skin Plunges on First Day of Trading Resumption, Hits Upper Limit Intraday

[Asia Economy Reporter Ji Yeon-jin] Cosmetics manufacturer Skin&Skin surged to the upper limit price from the early opening on the 6th. Although the stock price plummeted more than 20% the previous day when trading resumed, the news that the major shareholders decided on a mandatory stock lock-up appears to have boosted the stock price.

Skin&Skin rose to 457 won, up 29.83% compared to the previous day, within about 10 minutes after the market opened that day. Afterwards, the stock price fell again but was still recording an increase of over 20% as of 9:20 a.m.

The company announced that the major shareholders, including the largest shareholder The Pyeonhan, voluntarily decided on a mandatory stock lock-up for their holdings to ensure Skin&Skin's management stability and responsible management, which is interpreted as the reason for the stock price jump.

Previously, Skin&Skin resumed trading on the KOSDAQ market the day before but closed down 21.78%. Skin&Skin's trading was suspended after being designated as a subject for a delisting suitability review due to consecutive operating losses over the last four fiscal years, which triggered delisting reasons last month.

However, the Korea Exchange KOSDAQ Market Committee decided to resume trading after Skin&Skin announced that its consolidated operating profit turned positive to 958 million won last year compared to the previous year. Despite this, it is analyzed that a sell-off occurred due to accumulated negative factors such as bankruptcy application dismissal, embezzlement, and breach of trust.