[Alpha Biz=(Chicago) Reporter Kim Jisun] GS Engineering & Construction's stock price plunged 20% due to the decision to rebuild the Gumdan apartment

GS Engineering & Construction's stock price plunged nearly 20% in the aftermath of its decision to completely rebuild apartments in Geomdan New Town, Incheon, where the underground parking lot collapsed.

According to the Korea Exchange on the 6th, GS Engineering & Construction closed at 14,520 won, down 19.47% from the previous trading day, marking a 52-week low.

The Ministry of Land, Infrastructure and Transport's construction accident investigation committee earlier announced the results of its two-month investigation into the cause of the accident in connection with the collapse of a slab in an underground parking lot at a Geomdan apartment in Incheon in late April.

In particular, as the cause of the collapse was found to be the overall insolvency of all stages, including design, supervision and construction, GS E&C issued an apology and promised to compensate for the damage caused by the full reconstruction of the Geomdan apartment complex and the delay in moving in.

As a result, insiders and outsiders of the stock market believe that investor sentiment is inevitable for a considerable period of time, paying attention to the reconstruction costs that GS Engineering & Construction will have to pay.

This is because the size of the complex is 17 buildings and 1,666 households, so the reconstruction cost is expected to be a significant burden on management.

In fact, after the announcement of the reconstruction, a large number of GS Engineering & Construction's stock sales poured out on the same day, focusing on foreigners and institutions.

In particular, foreign investors sold GS Engineering & Construction about 17.3 billion won on the same day, the sixth-highest net selling trend in the KOSPI market.

Institutions also sold a net 25.2 billion won worth of goods and sold it on the KOSPI market for the fifth time on the same day.

 

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