"Did they openly manipulate the stock price?" Sam Chun Dang Pharm plunges to limit-down, then threatens to sue blogger

[Financial News] Sam Chun Dang Pharm, the leading stock on KOSDAQ, finished trading at the daily limit-down on the 31st. The company then stated it would file a criminal complaint against a blogger, identified as Mr. A, who had labeled the company a "rigged stock."

In a notice posted on its website that day, Sam Chun Dang Pharm said, "A certain blogger is confusing the market with baseless posts using expressions such as 'rigged stock' and 'blatant stock-price manipulation.'" The company added, "We will file a complaint against this blogger for defamation and obstruction of business."
The company went on to say, "We also strongly protest that a certain analyst is circulating a note claiming that additional clinical trials are required for generic drug registration." It warned, "If that note was posted without verifying the facts, we have decided to take legal action."
The company further explained, "The size of this contract is not 150 billion won, but milestone payments (stepwise licensing fees). In fact, if the partner’s projected sales are realized over the contract period, total sales will reach 15 trillion won, and Sam Chun Dang will receive 90% of the net profit from those sales."
Earlier, on the 30th, blogger A had posted an article titled "Request for investigation into stock-price manipulation of the No. 1 stock on KOSDAQ." In it, he raised suspicions of stock-price manipulation in connection with Sam Chun Dang Pharm’s contract, arguing that the deal looked suspicious.
He argued, "This will leave the disgraceful record that the worst rigged stock in history became No. 1 on KOSDAQ, and overseas, the perception of the Korean stock market will worsen and become an embarrassment. As each day passes, more victims will emerge due to a stock-price collapse."
On the 30th, Sam Chun Dang Pharm announced that it had signed a license agreement with a U.S. partner for a generic drug version of the oral diabetes treatment Rybelsus and a generic drug version of the oral obesity treatment Wegovy oral (active ingredient Semaglutide). At the partner’s request, details such as the counterparty and other specifics were not disclosed.
The company added that, under this agreement, it secured milestone payments of 100 million dollars (about 150.9 billion won) and finalized terms under which Sam Chun Dang Pharm will receive 90% of the partner’s product sales revenue for 10 years from the date of the first product sale.
Blogger A did not back down even after the company’s notice about filing a complaint. In an additional post, he wrote, "Am I some big-shot blogger? It’s ridiculous that something like this could affect a company’s stock price, and it’s also ridiculous to say they’ll sue over this," adding, "If they report me, I’ll see it through to the end."
Meanwhile, based on the closing price on the last trading day of last year, Sam Chun Dang Pharm’s share price was 232,500 won. The stock closed at 1,158,000 won the previous day, soaring 398% since the start of the year. Despite market turmoil caused by the war in the Middle East, the stock surpassed 1 million won per share on the 25th, becoming a so-called "emperor stock," and overtook EcoPro, ECOPRO BM, and Alteogen to claim the top spot in KOSDAQ market capitalization. However, as profit-taking orders poured in all at once, the share price fell 29.98% on the 31st, ending the session at 829,000 won.

moon@fnnews.com Moon Young-jin Reporter