[Special Stock] Yulchon Chemical Hits 52-Week Low... News of 1.5 Trillion Won Contract Termination

Breaking 52-Week Low After 6 Months
Announcement of Cancellation of 1.5 Trillion Won Supply Contract Before Market Open

Yulchon Chemical plummeted over 20%, hitting a 52-week low. The news of a large-scale contract termination appears to have influenced this decline.

As of 9:38 AM on the 31st, Yulchon Chemical was trading at 22,750 KRW, down 24.42% (7,350 KRW) from the previous day. Shortly after the market opened, it hit a low of 21,100 KRW. This price is lower than the 52-week low of 24,950 KRW recorded in January.

Before the market opened that day, Yulchon Chemical announced the termination of its aluminum pouch supply contract for lithium-ion battery manufacturing. The termination amount is 1,487,170,940,000 KRW. This accounts for 358% of last year's sales. The contract was signed in September 2002, with a contract period from 2023 to 2028.

Yulchon Chemical is a subsidiary of Nongshim that produces packaging materials for snacks and ramen and supplies them to Nongshim. It also operates in the secondary battery materials business. Last year's sales were 414.5 billion KRW, with an operating loss of 16.2 billion KRW.