Sisa Week = Reporter Kwon Jeong-du The corona 19 crisis has brought unprecedented crises and changes to the world. But it was also an important opportunity for some. One of the representative figures who took the golden opportunity amid the Corona 19 crisis is Chun Jong-yoon, CEO of Seegene.
Founded in 2000 and walked a single path in the field of molecular diagnosis, he quickly developed a diagnostic kit when the Corona 19 crisis broke out, contributing a great deal to the global “war on quarantine”. In addition, as the company’s performance and stock prices soared, it gained enormous wealth.
He is now facing another difficult, important task. It is’shareholder appreciation’.
◇ Duksim shining with Corona 19… Shareholders fill’new task’
According to the industry, Seegene’s minority shareholders’ organizations have recently launched a full-fledged’collective action’. Since last November, they have been rallying around the online community, and they have secured more than 1 million shares, which is well over 4% in ownership. It is reported that after meeting with Seegene in December of last year, an official letter containing requests such as convocation of an extraordinary shareholders’ meeting was recently sent to Seegene. According to the commercial law, it is possible to request a convocation of an extraordinary shareholders’ meeting by securing a 3% or more stake.
Their main complaint is the stock price. The stock price is low compared to the company’s value, but the company is passive in its efforts to boost its stock price.
Seegene’s stock price ended at 3,650 won in 2019. Before Corona 19 broke out in China, it was around 20,000 won. This soared out of control with the spread of the Corona 19 crisis, and peaked at 322,200 won at one time during the week in August of last year.
However, the uptrend slowed down after that, and a marked downtrend continued from mid-November. In just one year, the stock price, which soared 10 times, fell by half again, showing a’roller coaster move’.
Seegene minority shareholders who file complaints point out that it is difficult to understand the current share price in light of the company’s performance and future prospects. In fact, Seegene’s cumulative sales for the third quarter of last year increased by 675% compared to the same period last year, and operating profit also increased by 232%.
They also insist that Seegene is backing up despite this situation. It is pointed out that even promoting the company is passive rather than actively promoting the company to boost the stock price.
With the voices of minority shareholders in full swing, Seegene officially announced in December last year that it would significantly expand its dividend policy, and executives have started buying treasury stocks. However, the complaints of minority shareholders have not been resolved, and eventually led to a more full-fledged move.
◇ Seegene “I sympathize, but be careful”
Seegene agrees with the dissatisfaction of minority shareholders, but argues that a careful approach is necessary.
An official from Seegen said, “I agree that the current stock price is undervalued compared to the company’s value.” Even if the vaccine is developed and inoculated, it is true that diagnosis is still necessary, but it is regrettable that this point has not been properly evaluated.”
“We are also fully aware of the point that measures are needed to boost stock prices, and last year’s announcement of dividend policy and repurchase of executive treasury stocks was made in that respect.” . The company should not only pursue short-term share price stimulus, but also pursue long-term profits and growth.”
In addition, a Seegene official said, “We have not yet received an official letter from the minority shareholders’ organization,” and “If we confirm the details, we will sincerely review and respond appropriately.”
The success story of Chun Jong-yoon, CEO of Seegene, who shined amid the Corona 19 crisis, starts from a difficult childhood when he had to fight a bottleneck. He struggled with illness without going to high school properly, and after overcoming the disease, he became a doctor of molecular biology. Even after starting Seegene, a difficult time came, but after moving toward the goal of securing original technology, we became equipped with excellent technology. In the early days of the coronavirus outbreak, it succeeded in making great results with a bold determination faithful to its duty as a molecular diagnostic company.
However, the new task in front of CEO Chun Jong-yoon is different from what he has been passed on. A balance is needed to persuade shareholders in each of the complex interests while pursuing the future value of the company. As the company has grown, CEO Chun Jong-yoon’s future move, who faced an inevitable task, is noteworthy.
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