AhnLab shares plunge on founder's political defeat

• Published date: 09 March 2023
• Publication title: The Korea Times

Shares of AhnLab, a security software company, reported a double-digit price decline, Thursday, after Rep. Ahn Cheol-soo suffered a crushing defeat in the race for leadership of the ruling People Power Party (PPP). Ahn is the founder and the largest shareholder of the company.

AhnLab shares started trading with the huge fall reflecting investors' disappointment in the overnight election result. The stock price of the company closed at 64,300 won, down 12.75 percent from the previous session.

The firm's share price soared to around 97,000 won in early February on hopes that Ahn would become the party leader. But that sentiment lost steam rapidly as the possibility of his election win weakened. According to the vote results, Kim Gi-hyeon, the newly elected chairman of the party, won 52.93 percent of the ballots, while Ahn ended up securing only 23.37 percent.

AhnLab's share price has been swayed by its founder's political ups and downs after he debuted as a candidate for Seoul mayor in 2011. Ahn owns 18.57 percent of AhnLab.

Experts advise investors to exercise caution before making investments in politically themed stocks.

"Politically themed stocks soar irrationally from time to time during election periods...