Chinyang Industry, Chinyang Poly hit upper limit

First-instance fine overturned to not guilty on appeal

Seoul Mayor Oh Se-hoon [Yonhap]
Seoul Mayor Oh Se-hoon [Yonhap]

Stocks linked to Seoul Mayor Oh Se-hoon soared Friday after he was acquitted on appeal on charges that he had a third party cover the cost of polling services provided by political broker Myung Tae-kyun.

According to Korea Exchange, shares of Kospi-listed Chinyang Industry hit the daily upper limit Friday, while other Chinyang group stocks also surged — Chinyang Poly (+29.81 percent), Chinyang Chemical (+29.81 percent), Chinyang Holdings (+23.01 percent) and Chinyang Pharmaceutical (+19.37 percent).

The stocks have long been classified as theme stocks tied to Oh because Yang Jun-young, chief executive of Chinyang Holdings, is a fellow Korea University alumnus of the mayor. The acquittal, which allows Oh to remain in office, ignited investor sentiment.

Oh had been fined 10 million won ($7,550) at trial after being convicted of receiving polling services from Myung and arranging for a third party to pay for them. The appellate court overturned that verdict Friday, finding him not guilty.


jiyun@heraldcorp.com