By Park Hyong-ki
Staff Reporter
Shares of LG Innotek fell in line with losses on the broader stock market.
LG Innotek closed down 1,700 won, or 3.84 percent, at 42,500 won Friday, while the benchmark KOSPI market tumbled 28.21 points, or 1.73 percent, to 1,597.93.
Although the downfall of LG Innotek shares is aligned with the general investors sentiment undermined by slow U.S. housing sales and global financial agitations, analysts say that is not the only reason leading to its stock price plunge.
They noted that the news of LG Group Chairman Koo Bon-moo, his family and scions reaping huge gains after Innotek went public negatively affected investors.
``Overall, investors rushed to sell their shares of Innotek on global economic woes, but the news also somewhat affected the investment public as investing in Innotek can be negatively seen as boosting profits of the chaebol family,'' said an analyst, asking for anonymity.
Innotek, one of two tech component subsidiaries of LG Group, listed its shares on the KOSPI market on July 24. Its shares began trading at 43,000 won, higher than the initial public offering price of 40,500 won. On the first day, its shares finished at 44,200 won.
LG Electronics is the biggest shareholder. The Innotek shareholdings of Chairman Koo and 31 family members, including his children, cousins and nephews are worth around 55 billion won based on the stock par value of 5,000 won.
The chairman has a 1.19 percent stake in the tech components maker, worth around 4 billion won, while his first-born daughter's 0.63-percent share is estimated at 2.1 billion won. Meanwhile, Koo's only adoptive son ― Kwang-mo ― owns a 0.49 percent share, or 1.6 billion won.
However, shares owned by Ja-yong ― the chairman's father's cousin _ have the highest value of around 7 billion won, followed by Koo Ja-hong, chairman of LS Cable, at over 5 billion won.
LG Innotek produces components for LCD and camera modules. It works closely with its sister firm, LG Micron, also a tech component company. CEO Hur Young-ho heads both companies.
Innotek is aiming at 2 trillion won in sales this year, about a half of Samsung Electro-Mechanics' sales target.
Innotek is preparing to merge with Micron to catch up with Samsung, one of the global top 10 tech components makers.
phk@koreatimes.co.kr