Bad news quietly released before the holiday... 134 'Night Owl Disclosures'

The pattern of 'Night Owl Disclosures'—releasing negative news after the stock market closes just one day before the Chuseok holiday—has repeated again this year.

According to the Financial Supervisory Service's electronic disclosure system on the 3rd, a total of 297 disclosures were recorded by KOSPI and KOSDAQ-listed companies the previous day.

Among these, 134 disclosures (71 for KOSPI, 63 for KOSDAQ) were made after 3:30 PM, when the regular trading session ends, accounting for nearly half (45.1%) of the total.

In particular, there were many disclosures that act as bad news for stock prices, such as management dispute lawsuits or the suspension of transactions with business partners.

Dongsung Pharmaceutical, which is undergoing a management dispute, disclosed that a lawsuit related to the management dispute was filed on this day, requesting the cancellation of the appointment of four internal directors resolved at the extraordinary general meeting of shareholders on the 12th of last month.

Furthermore, through a separate disclosure, the company stated that although CEO Na Won-gyun was dismissed and Yoo Young-il, CEO of Laeheil Korea, was appointed as the new representative at the board meeting on the 25th of last month, they are reviewing legal procedures as procedural flaws such as failure to guarantee attendance rights and unilateral summoning, postponement, and enforcement were identified.

Youngpoong Paper also disclosed that it changed its representative director to former KH Construction CEO Kwon Hyuk-bum due to the 'personal reasons' of CEO Lee Ok-soon.

Additionally, Bumyang Construction announced that it received a one-month restriction on bidding eligibility from Jangseong-gun due to its mid-term withdrawal from the joint contract group for the Cheongun Underpass construction project in Jangseong-gun, Jeollanam-do.

Paradise reported through its consolidated financial statement performance disclosure that September casino revenue was 64 billion won, a 20.4% decrease from the previous month, and the drop amount also decreased by 13.5% to 567.7 billion won.

Disclosures made during time slots where it is relatively difficult for investors to pay attention carry a high risk of acting disadvantageously toward shareholders.

Accordingly, before a market closure of three or more days, the Korea Exchange re-notifies disclosures made after the market close on the last trading day through its website and other channels on the first trading day after the holiday.