Controversy is growing over the stock selection criteria of a thematic exchange-traded fund (ETF) that had included Samchundang Pharmaceutical (000250.KQ). The debate has intensified after Samchundang Pharma officially stated that its business structure is not centered on technology licensing, raising questions about the integrity of the "tech-licensing" themed ETF that had included the stock.
According to the Korea Exchange (KRX) on Wednesday, Samchundang Pharma's shares started the year around 200,000 won. Fueled by expectations for the development of oral insulin and a generic version of the obesity drug Wegovy, the stock surged past 1.18 million won on June 30, earning "emperor stock" status. However, amid subsequent controversy over its contract structure, the stock plunged to 519,000 won as of Wednesday.
During this period of heightened volatility, multiple active ETFs successively reduced their holdings or fully divested the stock. This has led to interpretations that the moves went beyond simple rebalancing and amounted to a reassessment of the stock's fundamental suitability.
