Nose Cream Nosedives
On July 7, Amore Pacific lost more than 10 percent in the Korean stock market, and Chairman Seo Kyung-bae yielded the top spot to Samsung Group Chairman Lee Kun-hee on the list of the richest stockholders in Korea. The Amore Pacific chairman had risen to the top on July 2, briefly taking the Samsung Group chairman’s place.
According to industry sources including Chaebul.com, the value of the treasury stocks owned by the Amore Pacific chairman plummeted by as much as 12.7 percent, from 11.5221 trillion won (US$10.1540 billion) to 10.0621 trillion won (US$8.86572 billion). No less than 1.46 trillion won (US$1.29 billion) went up in smoke in just a single day.
The cosmetics stocks dropped so quickly because of dumping by foreign and institutional investors. That day, LG Household & Healthcare lost 3.66 percent, and Kolmar Korea lost 11.01 percent. The rates of decline amounted to 6.15 percent for Cosmax, 5.49 percent for Hankook Cosmetics Manufacturing, and 6.25 percent for Hankook Cosmetics, although these stocks led the recent bullish movement in the Korean stock market based on relative over-valuation.
The same situation occurred in the KOSDAQ market as well. Sansung L&S recorded a drop of 7.92 percent, while the stock prices of Coreana and ACT fell by 5.42 percent and 7.47 percent, respectively.