Lee Jung-jae 10 Billion · Jung Woo-sung 2 Billion Wider Planet Hits Upper Limit Despite Insider Trading Allegations

Actor Lee Jung-jae's investment of 10 billion KRW to become the largest shareholder of Wider Planet has led the company's stock to hit the daily limit up for two consecutive days. Although suspicions of insider trading arose due to the stock price rising even before the investment, the stock price continues to show strong momentum.

According to the Korea Exchange on the 11th, Wider Planet closed at 6,270 KRW, up 1,445 KRW (29.95%) from the previous day. It recorded the daily limit up for two consecutive days after closing up 29.88% on the 8th, the previous trading day.

Wider Planet, established in July 2010, is a provider of big data analytics and AI-based automated programmatic marketing service platforms. It develops core technologies such as natural language processing, user context recognition, user profiling, and performance prediction. However, based on performance, it has recorded operating losses continuously over the past five years.

Nevertheless, the reason for the stock price hitting the daily limit up is the news that actor Lee Jung-jae will become the largest shareholder by participating in a large-scale paid-in capital increase. On the 8th, Wider Planet announced a third-party allotment paid-in capital increase worth 19 billion KRW. This is a large-scale capital increase amounting to 5,965,460 shares, which corresponds to 86% of the total shares issued before the capital increase.

Among these, Lee Jung-jae will secure 3,139,717 shares for 10 billion KRW. Once the payment is completed on the 20th, Lee Jung-jae will hold a 24% stake in Wider Planet, becoming the largest shareholder. The current largest shareholders, co-CEOs Koo Kyo-sik and Jung Soo-dong, each hold about 15%. Actor Jung Woo-sung is also investing 2 billion KRW to receive 627,943 shares.

However, the market has raised suspicions of insider trading regarding Wider Planet. Although the paid-in capital increase announcement was made on the 8th, the stock price surged sharply starting from the 5th. In fact, Wider Planet's stock price had been on a downward trend since the beginning of the year. The stock price, which was in the 5,000 KRW range at the start of the year, fell to the 2,700 KRW range as of the 4th.

But on the 5th, it suddenly hit the daily limit up. The opening price started with a 0.3% increase but surged about 30% during the day. On the following day, the 6th, it dropped sharply by 10%, and then rose 14% intraday the next day, showing a rollercoaster stock price movement.

Previously, Lee Jung-jae was also perceived as a 'Han Dong-hoon theme stock' material. After a photo of him dining with Minister of Justice Han Dong-hoon was released, Daesang Holdings hit the daily limit up, causing rapid stock price fluctuations.

Meanwhile, Wysiwyg Studios, which also invested 2 billion KRW in Wider Planet's paid-in capital increase along with Lee Jung-jae and others, recorded the daily limit up on the same day.