7 Consecutive Days of Limit-Up Rally... Lee Jung-jae's Share Value Increased from 10 Billion to 72.8 Billion Won

KOSDAQ-Listed Wider Planet Hits Upper Limit for 7 Trading Days
Major Shareholders Lee Jung-jae and Jung Woo-sung Achieve Over 700% Returns

KOSDAQ-listed company Wider Planet recorded its seventh consecutive day of hitting the upper price limit, pushing the returns of actors Lee Jung-jae and Jung Woo-sung, who became major shareholders, beyond 700%.

"Major Shareholders Lee Jung-jae and One Other" Record 7 Consecutive Upper Limits

Actors Jung Woo-sung and Lee Jung-jae. [Image source=Yonhap News]

According to the KOSDAQ market on the 21st, Wider Planet closed at the daily price limit upper bound of 23,200 KRW the previous day. This was a sharp increase of 29.75% (5,320 KRW) compared to the previous trading day's closing price of 17,880 KRW. Due to the rapid price surge, the stock was designated as a high-risk investment item on the 19th and trading was suspended for one trading day, but it recorded seven consecutive upper limits immediately after trading resumed. The stock showed strength from the start of trading by hitting the upper limit.

Wider Planet, a big data-based marketing platform company, was listed on the KOSDAQ market in 2021. On the 8th, after market close, it announced a third-party allotment paid-in capital increase worth 19 billion KRW to raise operating funds, drawing significant attention as actors Lee Jung-jae and Jung Woo-sung were included as allotment recipients.

Wider Planet announced that the major shareholder changed from "Koo Kyo-sik and one other" to "Lee Jung-jae and one other" on that day. Currently, the major shareholders hold 29.27% (3,767,660 shares), with Lee Jung-jae and Jung Woo-sung securing 24.39% and 4.88%, respectively.

It is estimated that Lee Jung-jae and Jung Woo-sung fully paid approximately 10 billion KRW and 2 billion KRW in investment funds, respectively. With the stock reaching seven consecutive upper limits that day, the value of Lee Jung-jae’s holdings rose to about 72.8 billion KRW, and Jung Woo-sung’s to about 14.568 billion KRW. This represents more than a sevenfold return.

Influence of Friendship with Han Dong-hoon, a 'Hyundai High School Classmate'

Actor Lee Jung-jae, a classmate from Hyundai High School (5th class), and Han Dong-hoon, Minister of Justice.
[Image source=Online community capture]

The background of the stock price surge is attributed to the friendship between Lee Jung-jae and Han Dong-hoon, Minister of Justice. Photos of the two, known to be classmates from Hyundai High School (Class 5), having dinner on a weekend evening were released last month, after which related stocks recorded multiple upper price limits.

In particular, Lim Se-ryeong, vice chairman of Daesang Holdings and Lee Jung-jae’s partner, unexpectedly benefited. The stock price of Daesang Holdings Preferred shares recorded seven consecutive days of upper price limits from the 25th of last month to the 6th, soaring 525.2%. Vice Chairman Lim holds a 20.41% stake as the second-largest shareholder.

Allegations of 'Preemptive Trading'... Stock Price Rose Before Disclosure

However, some have raised suspicions of preemptive trading as the stock price hit the upper limit even before the capital increase announcement on the 8th. Wider Planet’s stock price hit the upper limit on the 5th and surged 9.26% on the 7th, the day before the announcement.

Artist Company, the agency representing Lee Jung-jae and Jung Woo-sung, explained, "Lee Jung-jae and Jung Woo-sung have formed a strategic collaboration with Wider Planet and plan to incorporate scientific methods into the content production and distribution process to increase success rates in their future projects."