[Market Focus] Satrec Initiative Plunges Over 15% Amid 'Technology Leak' Controversy

Shares of Satrec Initiative are on a downward trend amid controversy over the alleged leakage of national core technology. As of 9:07 a.m. on November 26, Satrec Initiative was trading at 46,950 won, down 8,850 won (15.86%) from the previous trading day.

The previous day, a domestic economic media outlet reported that Satrec Initiative had been referred to the prosecution on suspicion of transferring national core technology to the United Arab Emirates (UAE) and other countries.

Choi Junghwan, a researcher at LS Securities, stated, "There are various possible scenarios, and uncertainty has increased. Since no conclusion has been reached yet, we need to monitor the situation," adding that the company could face penalties such as fines, export controls, and restrictions on bidding for government projects as a result of the alleged technology leak.

He explained, "Currently, Satrec Initiative is focusing on domestic military-related projects, and is not engaged in satellite system export businesses." He added, "For this year, export sales are expected to account for approximately 7.2% of the total annual revenue. In the future, most of the export revenue is expected to come from the leasing contract of its own satellite, SpaceEye-T."