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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Theborn Korea, led by celebrity entrepreneur Baek Jong-won, hit an all-time low on Monday amid a series of ongoing controversies.
The company’s stock closed at 27,900 KRW, down 2.28% from the previous session, after hitting an intraday low of 27,800 KRW (-2.63%).
Theborn Korea has been facing continuous criticism regarding product quality and legal violations.
Online allegations surfaced claiming that during a November 2023 local festival, the company used a pesticide sprayer to distribute juice and barbecue grills made from construction materials.
In response, Theborn Korea issued a statement on March 16, asserting that it had adhered to food sanitation laws but promised to review and improve its practices.
Regarding the sprayer issue, the company stated that no legal violations were found, but after consulting with authorities, it was advised to avoid such practices and would discontinue the use of sprayers.
As for the barbecue grill, Theborn Korea explained that it was made from POSCO’s stainless steel 304, which meets food safety standards. The company also noted that it had displayed safety inspection certificates at the festival site.
Investor frustration is growing as Theborn Korea continues to face negative publicity. Since its November 6, 2023 IPO, the stock once soared 90% above its 34,000 KRW offering price to 64,500 KRW, but has since lost more than half its value.
Additionally, South Korea’s National Agricultural Products Quality Management Service has reportedly filed criminal charges against Theborn Korea for falsifying the country of origin labels on soy sauce, doenjang (fermented soybean paste), and other agricultural products.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
