Shinsung E&G CEO Borrows 2 Billion Won to Buy Founder’s Shares

What happened

Shinsung E&G CEO Lee Ji-sun purchased shares from company founder and Chairman Lee Wan-keun, her father, worth approximately 2 billion won using a stock-backed loan. The company disclosed on Oct. 19 that Lee Ji-sun recently acquired 115,600 shares in an off-market transaction at 17,250 won per share, raising her stake from 8.25% to 8.82%. Chairman Lee sold 173,300 shares, reducing his stake from 6.94% to 6.09%; the remaining 57,700 shares were purchased by his eldest daughter Lee Jeong-sun, CEO of Shinsung Enex, and by subsidiary Shinsung Enex. Lee Ji-sun borrowed 2 billion won from Hanyang Securities on Oct. 13; the loan carries a 150% collateral ratio secured by 195,714 Shinsung E&G shares, with a 6% interest rate — the highest among her existing stock-backed loans, which average approximately 133% — and matures on Jan. 11, 2027. The source does not state the reason for the purchase; because the transaction does not change the family's combined ownership, its impact on management control is limited. More than half of the 21.18% stake held by Lee Ji-sun and related parties has been pledged; if she fails to repay, or if the share price falls below approximately 15,330 won, the pledged shares could be forcibly liquidated. Shinsung E&G shares closed at 15,330 won on Oct. 20. The company also said it has no current plans for a rights offering; as of the first half of 2026, it held approximately 22.2 billion won in cash and cash equivalents and had accumulated losses of around 6 billion won.

Impact and signal

Affected components and suppliers

Source and time

Source: The Elec · 10/20/2026 · View original source