[Edaily Reporter Kwon Oh-seok] Allegations have surfaced that the major shareholder of #HYTC, a manufacturer of secondary battery equipment components, intentionally sought to induce the company’s delisting. Minority shareholders claim that the company concealed positive news and neglected its stock price, while the company categorically denies these allegations.

According to the financial investment industry and minority shareholders on the 9th, HYTC’s market capitalization exceeded 200 billion won at the time of its listing in 2022, but has plummeted to around 28 billion won based on the closing price (2,765 won) on that day. If this trend continues, the company could meet the delisting criteria (market cap below 30 billion won) set to take effect in January next year and face delisting.
Minority shareholders argue that, contrary to this stock price trend, the company’s fundamentals have remained solid. Over the past few years, HYTC has maintained annual revenue in the 30 billion won range and operating profit ranging from at least several hundred million won to 7 billion won. Total capital, which stood at 55.1 billion won in 2022 (including funds raised at the time of listing), has actually increased to 64.7 billion won as of 2025. However, the company posted an operating loss last year due to factors such as the market “chasm.”
The issue that minority shareholders take the strongest objection to is the company’s selective disclosure practices. They argue that the company’s investment performance and growth story have not been communicated to the market at all, leading to sluggish stock performance. Since its listing in 2022, HYTC has failed to disclose a series of developments that would have positively impacted its stock price, including the establishment of a U.S. subsidiary, selection for government-funded projects, acquisition of patents, expansion of its second mold manufacturing plant, increased orders for semiconductor components, and the acquisition of various international certifications.
Consequently, some shareholders filed a lawsuit against the company seeking 34.64 million won in damages, citing violations of directors’ fiduciary duties and the duty to treat shareholders fairly under the revised Commercial Act. In the complaint, the shareholder explained, “By managing the 33.9 billion won in public offering proceeds raised through the 2022 IPO, the company generated massive financial profits amounting to 7.5 billion won in 2025 alone. Since the source of these profits is none other than the funds contributed by minority shareholders, the proceeds should rightfully be returned to the shareholders.”
They further explained, "We calculated the amount equivalent to the dividends the plaintiff could have received had at least 1 billion won of the financial profits been used as dividend funds to pay differential dividends to minority shareholders, excluding the controlling shareholder."
Taking these circumstances into account, the minority shareholders believe that Taekwang, the major shareholder holding a 37.56% stake in HYTC, intends to exploit delisting requirements to delist HYTC and monopolize it at a bargain price. Taekwang, formerly a plumbing materials company, acquired HYTC in 2021 and has since expanded its business into the secondary battery sector.
The company denied all allegations raised by the shareholders. Regarding the failure to disclose positive news, it explained, "The establishment of a U.S. subsidiary and selection for a government-funded project did not meet the mandatory disclosure threshold, and the Korea Exchange also recommended against voluntary disclosures for items below that threshold."
Regarding the causes of the stock price decline and allegations of intentional delisting, the company added, “This was solely due to external factors such as macroeconomic uncertainty and market conditions across the entire industry sector. The claim that the parent company, Taekwang, artificially drove down the stock price is completely untrue, and the parent company is actively working to improve profitability.” The company also stated that it plans to appoint legal counsel to respond to the damages lawsuit.