Stocks plunged on 'destruction' remarks... Shareholders uneasy despite Jung Yong-jin's takeover

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Vice Chairman Jung Yong-jin's controversial remarks about destruction have had an impact not only on the politicians but also on the stock market. Although Vice Chairman Chung started to evolve, the share price of Shinsegae Group companies plunged more than 5%, and Shinsegae International also plunged more than 5%. Although Vice Chairman Chung started to evolve, the share price of Shinsegae Group companies fell sharply yesterday (10th).

This is reporter Im Tae-woo.

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Shinsegae stock, which once fell over 8% in the stock market, ended up falling 6.8%.

Shinsegae International, an affiliate of the company, also plummeted by more than 5%, and the market cap of the two companies decreased by more than 200 billion won in one day.

Shinsegae and Shinsegae International are running duty-free shops and cosmetics business in China with Vice Chairman Chung Yong-jin's younger brother and Vice Chairman Jeong Yu-kyung as the de facto major shareholder.

However, it is analyzed that a recent article posted on the Internet by Vice Chairman Chung Yong-jin with the words 'Destroyed' to an article containing a picture of President Xi Jinping was accepted as a risk factor in the Chinese market.

It is quite different from the slight rise in the stock price of E-Mart, which has been focusing on domestic consumption since it closed its Chinese business five years ago.

Negative opinions on cosmetics and duty-free shops themselves also acted as a negative factor.

[Security company official: (Duty-free shop, cosmetics industry) Because the issue of declining sales has come to the fore, all related stocks plummeted today... .]

Vice-Chairman Jeong deleted the post in question and explained that it was written about North Korea in the afternoon, and began to evolve.

[Shinsegae Group official: The Chinese market continues to be closely watched to the extent that it is a bit of a wait-and-see situation.]

Amidst the debate among shareholders as to whether it is freedom of expression or inappropriate behavior as a manager over the remarks of Vice Chairman Chung Controversy is not expected to subside easily as even influential media in Hong Kong began to report on Vice Chairman Chung's annihilation.