Share Price of SK Networks Reaches Maximum Price for Three Consecutive Days

The share price of SK Networks Co., formerly SK Global Co., has been soaring for three days in a row with an expectation of business normalization since its resumption of dealership. It soared by 2,095 won per share with a rise in price limit (270 won) from 1,385 won right before the suspension of the trade on October 7.

It is explained that this rising trend in share price of SK Networks was mainly due to high expectations of business normalization, such as the sign of a memorandum of understanding (MOU), by which they will graduate early from co-management on the circumstance that SK Networks and creditors meet certain conditions, such as the realization of the goal of returns for two years in a row and real ordinary income.

It is also expected that SK Networks will sell out 1,000 shares (7.8 percent) of SK Co., which was reserved abroad to a family of the owner of SK and its affiliates. There will be an improvement of financial affairs by reducing a long-term debt through the proceeds from sale. However, experts in stock markets said that the accurate assessment of the company could be rather flexible because capital decrease and creditors’ financing conversion is not made yet. The share price of SK Networks was resumed on October 2 after the suspension of trade on July 25, right after the creditor’s determination of request for resumption of the process of company disposal on July 24.

Kang-Woon Lee kwoon90@donga.com