Most Investors React with Shock
After Controversy, Section Deleted and Redistributed
Controversy has arisen online after a securities firm report mentioned Act-Geo, a US exploration company advisor responsible for analyzing oil and gas deposits around Yeongil Bay in Pohang, Gyeongbuk. On the 11th, the financial investment industry announced that a researcher from Securities Firm A posted a market report titled "Yeongil Bay Friends" on the 5th. The report discussed the Yeongil Bay gas field theme, mentioning gas pipes (Nexteel, Dongyang Steel Pipe, Husteel, HiSteel, SeAH Steel, SK Ocean Plant), fittings and valves (Hwaseong Valve, Woorim PTS, DK Lock, Sungkwang Bend), utilities (Korea Gas Corporation, GSE), cement (Korea Cement, Sampyo Cement, Sungshin Cement, Hanil Cement), and exploration (Wavers).
On the 5th, Dr. Vitor Abreu of Act-Geo from the United States, who entered through Incheon International Airport, is answering reporters' questions. He is expected to explain his analysis of the potential for oil deposits during his visit to Korea. [Photo by Yongjun Cho jun21@]
The report also mentioned Bitro Abreu, an advisor at Act-Geo. CEO Abreu is a geological expert who conducted basic exploration around Yeongil Bay in Pohang. The researcher stated, "Advisor Act-Geo is scheduled to hold a press conference on the 7th at the Government Sejong Complex with the Ministry of Trade, Industry and Energy regarding the development of the East Sea deep-sea gas field," adding, "The probability that he is not a fraud increased due to his fast feedback, which Koreans like, and his appearance resembling Coach Hiddink."
Former Coach Hiddink
Gus Hiddink, mentioned in the material, was the head coach of the South Korean national soccer team during the 2002 World Cup. He led the 'semifinal miracle' and was treated as a 'hero' domestically at the time. The Securities Firm A report appears to imply that CEO Abreu is trustworthy because he externally resembles Hiddink, who is nationally well-liked.
As the report was shared on the securities firm's official website and social networking services (SNS), controversy arose among investors. Questions were raised about whether it is appropriate to include an expert's appearance in a forecast report on a government-led project involving astronomical costs. Many investors responded with disbelief. There were also criticisms about whether it is appropriate to base forecasts for government projects requiring astronomical costs on the representative's appearance.
Criticism also followed regarding the publication system of Securities Firm A's research institute, as the material was published without internal filtering. Notably, the end of the material states that compliance (internal control) regulations were followed. Some interpret this incident as a result of a trend toward lighter content and format in research institute reports and materials. In response to the controversy, the securities firm reportedly deleted the problematic parts and reposted the report.
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