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Photo = Yonhap news |
[Alpha Biz= Paul Lee] LG Energy Solution’s stock price has fallen below its IPO price of KRW 300,000 for the first time, also ceding its position as the third-largest company by market capitalization on the KOSPI to Samsung Biologics.
According to the Korea Exchange, on May 16, LG Energy Solution closed at KRW 290,500, down 5.37% (KRW 16,500) from the previous trading day—setting a new all-time closing low since its listing in January 2022.
As a result, the company’s market capitalization fell to KRW 67.977 trillion. Meanwhile, Samsung Biologics’ share price rose 0.4% (KRW 4,000), bringing its market cap to KRW 71.3163 trillion, surpassing LG Energy Solution and reclaiming the third position on the KOSPI.
The KOSPI index itself closed at 2,626.87, up 5.51 points (0.21%).
The downturn extended to other major secondary battery companies. Samsung SDI fell 2.95%, SK Innovation dropped 1.13%, and all three recorded 52-week lows. Related stocks such as Ecopro Materials (-5.67%), L&F (-4.34%), Lotte Energy Materials (-4.33%), and POSCO Future M (-3.06%) also declined sharply. On the KOSDAQ, Ecopro (-3.5%) and Ecopro BM (-2.98%) similarly showed weakness.
The recent decline in battery-related stocks stems from a tax reform proposal released on May 12 (local time) by U.S. House Republicans. The bill includes a plan to end electric vehicle (EV) tax credits under the Inflation Reduction Act (IRA) by 2027—six years earlier than the original 2032 deadline—and gradually phase out the Advanced Manufacturing Production Credit (AMPC) by 2031.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
