[Edaily Reporter Kwon Oh Seok ] More than a month has passed since KOSDAQ-listed company DONGYANG E&P INC.(079960)announced its “Value-Up” (corporate value enhancement) plan last June, but its stock price has actually fallen below the level at the time of the announcement, fueling growing controversy over the plan’s effectiveness. Furthermore, while the company’s controlling shareholders have been steadily buying back shares, the stock price has shown little sign of recovery, leading to assessments that the company has fallen into a desperate situation with no clear way out.

According to MP Doctor on the 3rd, DONGYANG E&P INC. closed at 19,600 won, down 1.46% from the previous trading day. Although the KOSDAQ market saw a sharp surge that day—including the activation of the buy-side circuit breaker—the company did not actually benefit from it. Its PBR (price-to-book ratio) also remained at just 0.34x. Considering that the PBR for the KOSDAQ Blue-Chip Index, to which DONGYANG E&P INC. belongs, stands at 1.46x, the company is significantly undervalued.
Founded in 1987, DONGYANG E&P INC. is a publicly traded company well known as a specialist in so-called “switching power supplies” (SMPS) and a partner of SamsungElectronics. Having grown by supplying TV adapters and smartphone chargers to SamsungElectronics, DONGYANG E&P INC. reported consolidated revenue and operating profit of △536,914.17 million won and 42,958.41 million won in 2023 △548,392,780,000 won and 51,618,120,000 won in 2024, and △596,475,210,000 won and 53,617,580,000 won in 2025, consistently generating profits.
Shareholders, citing the company’s low dividend payout ratio and passive shareholder return policy despite its solid performance, have been increasing pressure—including holding rallies—and have even submitted a petition to the Financial Supervisory Service. DONGYANG E&P INC., which has been criticized in particular for insufficient dividends and underutilization of treasury stock, sought to turn the tide last June by announcing a “value-up” disclosure that included △the cancellation of treasury stock, △diversification of its business portfolio, and △an increase in fixed dividends linked to sales targets.
However, the stock price has actually retreated; while it was in the 22,000 won range at the time of the value-enhancement announcement, it has since plummeted to the 19,000 won range. Although Shin TONGYANG Holdings, SY CO., LTD., and the Scholarship Foundation are using dividend proceeds to buy back shares and increase the controlling shareholders’ stake, the stock price has yet to show any signs of a rebound.
In response, the company explained, “The corporate value enhancement plan is not a policy aimed at short-term stock price gains, but rather a plan designed to improve corporate value over the medium to long term,” adding, “It is not appropriate to evaluate its success based solely on short-term stock price movements.”
The company further emphasized that “while the KOSDAQ index has fallen by more than 17% since the value-up announcement, DONGYANG E&P INC.’s stock price has declined by only about 8% during the same period,” highlighting that it has held up relatively well amid the market’s sharp decline.
The company continues to maintain a cautious stance regarding the bonus share issuance that shareholders have repeatedly demanded. Improving stock liquidity through a capital increase would likely boost the stock price.
The company added, “After conducting our own review of the expected effects of a stock split, we determined that the medium- to long-term effects are often limited or even negative in many cases, and we have explained these findings to our shareholders.” It continued, “We informed shareholders advocating for a stock split that if they submit a proposal outlining the expected effects and supporting rationale, we would compare and review it against our own findings and reconsider the matter; however, no specific proposals have been received to date.”