EcoPro HN shares dip on major capital increase decision

EcoPro HN Co. CI

EcoPro HN Co. saw its stock plunge by nearly 14 percent on Thursday morning, following its decision to increase capital.

Shares of EcoPro HN were trading 13.58 percent lower at 39,450 won ($29.6) as of 10:35 a.m. on Thursday, touching a 52-week low.

The decline comes after EcoPro HN announced that it will issue 5.67 million new common shares at 35,300 won apiece to raise 200 billion won for facility expansion.

Capital increases typically dilute existing shareholders‘ equity, leading to stock price drops.

Deepfake detection and security stocks, in the meantime, gained ground on Thursday.

Hancom With Inc. saw its stock rise by 30 percent to 2,990 won as of 10:37 a.m., reaching the upper limit. Monitorapp Co. also hit its price ceiling by rising 29.88 percent to 5,520 won.

Other gainers include Sands Lab Inc., Openbase Inc., Hanssak Co., RaonSecure Co., and M Eighty-three Co.

The surge follows the government’s move to intensify measures against deepfake crimes.

The Ministry of Gender Equality and Family plans to develop artificial intelligence-driven technology next year to automatically request the removal of deepfake videos.

The Ministry of Justice is also boosting its budget for analyzing deepfake voice and video distortions.

Kangwon Land Inc. stock was trading 7.42 percent higher at 17,660 won, following news of an expansion in its gaming facilities.

Kangwon Land received approval from the Ministry of Culture, Sports, and Tourism for casino operation changes on Wednesday.

The approval will allow Kangwon Land to expand gaming floors and machines. The foreigner-only zone will also be expanded to include both foreign nationals and permanent foreign residents, with the betting limit raised from 300,000 won to 30 million won.

The changes will require legislative amendments.

Other casino stocks were affected.

Shares of Grand Korea Leisure Co. were trading 6.14 percent higher at 12,270 won as of 10:41 a.m. and those of Paradise Co. 4.45 percent higher at 11,730 won.