EcoPro Group Loses 35 Trillion Won in Market Cap at Peak

Ecopro BM, Ecopro, Ecopro HN Plunge for 2 Consecutive Days
"Will Serve as an Opportunity to Balance Supply and Demand Across All Sectors"

The market capitalization of the Ecopro Group stocks has decreased by 35 trillion won from its peak.

On the 27th, Ecopro's stock price is displayed on the Korea Exchange monitor in Yeouido, Seoul, where it has been fluctuating after plunging nearly 11% in early trading. Photo by Jinhyung Kang aymsdream@

According to the Korea Exchange on the 28th, Ecopro BM, the largest market capitalization stock in the KOSDAQ market, closed at 376,500 won on the 27th, down 78,500 won (17.25%) from the previous trading day. Ecopro and Ecopro HN also fell sharply by 19.79% and 13.37%, respectively, causing all Ecopro Group stocks to plummet.

As a result, the market capitalization also shrank by 35 trillion won from the peak. Based on the intraday high on the 26th, the total market capitalization of Ecopro BM (57.1158 trillion won), Ecopro (40.9789 trillion won), and Ecopro HN (1.6758 trillion won) reached 99.7705 trillion won. However, with the sharp drop in stock prices that day, the closing market capitalization totaled 64.2106 trillion won, with Ecopro BM at 36.8222 trillion won, Ecopro at 26.2283 trillion won, and Ecopro HN at 1.1601 trillion won.

The Ecopro Group stocks had steadily risen but began to surge sharply from the beginning of this month. They attracted attention as a secondary battery theme, drawing in individual investors. Ecopro, which was priced in the 110,000 won range at the start of the year, skyrocketed over 1000%, becoming a dominant stock. In particular, posts boasting the returns of Ecopro Group stocks were frequently shared among individual investors.

This rise also caused an imbalance in stock market supply and demand. According to Meritz Securities, the KOSDAQ surged more than 40% based on closing prices from the beginning of the year to the 25th. However, the proportion of secondary battery stocks such as Ecopro, Ecopro BM, and L&F accounted for 25.4 percentage points of this increase.

Experts say it is difficult to predict Ecopro’s stock price. The previous rise was driven more by concentrated supply and demand rather than valuation. However, they expect that after some time, the value will align with the valuation. Lee Sang-heon, a researcher at Hi Investment & Securities, explained, "Ecopro rose due to supply and demand. Once the supply and demand are resolved, the overall height can be adjusted."

He also forecasted a balance across the entire sector. Choi Yoo-jun, senior researcher at Shinhan Investment Corp., said, "While profit-taking on secondary batteries is concentrated among individuals, sectors whose stock prices were suppressed due to supply and demand factors have rebounded. With the easing of supply and demand distortions, the stock market will find balance in terms of both supply and demand and price."