[Edaily Reporter KIM EUNG-TAE ] Market attention is intensifying as the lock-up period for shares held by key executives—including CEO Kim Byung-hoon—of global beauty company APR(278470)is set to expire in one day. As the lock-up period for a large stake—accounting for about one-third of the total shares—expires, concerns are being raised about the risk of an “overhang” (potential selling pressure). While APR has ruled out the possibility of a large-scale sale of shares, industry observers suggest that the company’s future performance in global market expansion and new business ventures will serve as a barometer for mitigating the overhang risk.

According to the Financial Supervisory Service on the 26th, the lock-up period on 12,350,970 shares of APR common stock will be lifted on the 27th. This represents shares being returned upon the expiration of a 2-year, 6-month lock-up period since the company’s listing on February 27, 2024, and accounts for 33% of the total number of listed shares (37,438,155 shares). Shares held by CEO Kim Byung-hoon (11,953,660 shares, 32%) and Executive Vice President Shin Jae-ha (477,310 shares, 1%) are included in the shares being released from the lock-up.
As the lock-up period on shares equivalent to one-third of the total outstanding shares has expired, making them available for sale, concerns about overhang risk are growing in the market. This is because if the shares held by key executives—including CEO Kim, the company’s largest shareholder—are released into the market or if a block trade (a large-scale off-market transaction) is executed, it could serve as a catalyst for increased stock price volatility.
In response to these concerns, APR took preemptive measures to prevent the spread of worries regarding overhang risk. During a conference call held earlier to announce second-quarter earnings, Vice President Shin explained, “There are no specific plans to sell shares following the lifting of CEO Kim Byung-hoon’s lock-up period,” adding, “There are also no plans for block trades or large-scale stock sales.” He continued, “For the time being, we are focused on enhancing shareholder value,” and added, “If there are any separate plans to sell shares or if a sale does take place, we will communicate this in advance to ensure there is no shock to the market.”
APR’s clarification has somewhat eased concerns regarding the overhang, and the stock price has been trending steadily recently. According to the Korea Exchange, APR’s closing price on the 25th was 440,500 won, a 39% increase from the closing price of 338,000 won earlier this month (August 3).
Industry observers suggest that whether the company’s enterprise value improves will be a key factor in mitigating overhang risk going forward. This is because if enterprise value is expected to grow through earnings growth, major shareholders are more likely to extend their holding periods rather than sell their stakes. APR has unveiled a strategy to fully launch its entry into Costco—a new cosmetics distribution channel—in the North American market during the second half of this year, while in the European market, the company will focus on expanding its Amazon online storefront and developing new offline channels. Based on this, the company has raised its annual revenue guidance from 2.1 trillion won to 3 trillion won and increased its operating profit margin forecast from the previous 25% to a maximum of 26%.
New business ventures are also cited as a key factor expected to enhance the company’s enterprise value going forward. As early as the end of the second half of this year, the company plans to make a full-scale entry into the “energy-based medical device” (EBD) business—used in dermatology clinics and other settings—following its existing line of home-use beauty devices. Additionally, having opened the floodgates for overseas exports of its Skin Booster starting in the second quarter of this year, the company plans to ramp up overseas sales to markets such as Japan and the Middle East in the second half of the year.
Lee Seung-eun, an analyst at Yuanta Securities Korea, stated, “As APR has raised its revenue target for this year to 3 trillion won and its operating profit margin target to 24–26%, expectations for its second-half performance are also expected to rise.” She added, “Growing optimism regarding the EBD and Skin Booster businesses will also serve as momentum for future earnings improvement.”