Average Loss Rate Nears 30%
Limitations of a Brand Structure Centered on Baek Jongwon
Franchise company Theborn Korea, led by founder and CEO Baek Jongwon, has recently been engulfed in a series of allegations, causing its stock price to plummet. Statistics show that 99.5% of investors have incurred losses just six months after the company's IPO. The average loss rate for these investors has approached 30%.
Statistics show that 99.5% of investors have incurred losses just six months after Theborn Korea's IPO. Yonhap News
According to Naver Pay's 'My Assets Service' on the 24th, the average purchase price for 5,846 investors in Theborn Korea was calculated at 37,513 won. Based on the previous trading day's closing price of 27,100 won, the average loss rate stands at 27.76%.
Data from NH Investment & Securities confirms this trend. Of the 16,640 people holding Theborn Korea shares, a staggering 99.5% have suffered losses, with the average loss rate calculated at 25.38%. This means more than a quarter of the invested capital has evaporated.
Theborn Korea was listed on the Korea Exchange on November 6 last year. At the time, the stock price soared to 64,500 won?nearly double the IPO price of 34,000 won?making a spectacular debut and drawing the spotlight in a sluggish IPO market. The popularity of the Netflix cooking competition show "Black and White Chef," featuring CEO Baek before the listing, also contributed to the company's strong start.
However, a series of controversies have since emerged, including issues over the price of Paekham, the tangerine beer content, food origin labeling, alleged violations of the Farmland Act, liquefied petroleum gas (LPG) safety management problems, and allegations of sexual harassment during employee interviews. As a result, the company has not recovered its IPO price even once this year and is currently trading at less than half of its first-day peak, continuing a sluggish trend.
In addition, it is reported that there are as many as 14 ongoing investigations related to violations of the Food Labeling and Advertising Act and the Food Sanitation Act. At the time of the IPO, CEO Baek expressed confidence, saying, "What trouble could I possibly cause at my age?" and "I've been exposed to the media for years without any issues." However, the company's structure, which is excessively dependent on his personal brand, has ultimately emerged as a risk factor.
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