This post is trending because it taps into a deep-seated fear among Korean retail investors: the specter of another major stock market scandal. The recent regulatory action against Samchun dang Pharm, a prominent biotech company, has triggered anxieties reminiscent of past collapses like SillaJen, leading to a heated debate about market regulation and investor protection.
Korean investors are on edge, fearing a repeat of past stock market scandals as biotech firm Samchun dang Pharm faces scrutiny on the KOSDAQ market. The original poster expressed deep frustration, lamenting that KOSDAQ is 'harder than it looks' and questioning why authorities didn't intervene sooner to prevent potential losses, drawing parallels to the infamous SillaJen incident that burned countless investors.
The fear stems from Samchun dang Pharm being designated an 'unfaithful disclosure corporation' by the Korea Exchange, receiving penalty points for failing to comply with public disclosure requirements regarding its business performance forecasts. This regulatory action has sparked a heated debate: should the government step in more aggressively to protect investors, or would such intervention be met with accusations of market manipulation? Some argue that KOSDAQ's inherent nature, often driven by momentum rather than fundamental value, makes it a risky playground. However, not everyone agrees with the doomsaying. One commenter passionately defended Samchun dang Pharm, highlighting its strong fundamentals as an eyedrop exporter and a platform company with promising biosimilar sales, arguing that current market 'noise' will dissipate once its clinical trials and sales figures materialize, distinguishing it from the SillaJen debacle.
🇰🇷 KOREAN REACTIONS 10
Are you really comparing Samchun dang to SillaJen? Most biotech substance patents fail in phase 3 even if phase 1/2 go well. Samchun dang is a platform company, an eyedrop exporter, and its Aflibercept biosimilar sales and operating profit are expected to be in the hundreds of billions this year. The current market distrust and noise will mostly disappear by the end of this year with successful clinical trials and sales figures.
I'm getting major Rubo incident vibes from this. (A past stock manipulation scandal in Korea)
Wasn't this the country where people complain if authorities *do* intervene? lol
I didn't know about the penalty points and the deliberation committee... whoa.
Why did I even touch active investing? I must've been crazy ㅠㅠ
Investment is your own responsibility, right? Going all-in on individual stocks is either knowing the stock really well or pure speculation... gotta think carefully.
It seems like they're trying to boost KOSDAQ with policies these days, but I think KOSDAQ boosting policies need to be handled with caution.
If you look at Jusung Engineering, you'll want to invest again. Its value isn't that different from Samchun dang, but it surges just on momentum. That's KOSDAQ for you.
Aren't there hundreds of listed companies? Supervising accounting and operations would require a ton of staff. On the other hand, if a company you invested in was rising and they intervened, wouldn't people say 'don't intervene'?
The Korea Exchange's KOSDAQ Market Division designated Samchun dang Pharm as an unfaithful disclosure corporation on the 20th for non-compliance and imposed 5 penalty points. They had already warned about this last month. What more could authorities have done? If you sold at the closing price on the 31st last month, you could've made a profit unless you bought during the few days it surged before that.