[Stock in Focus] THE CODI Co., LTD. Rallies +29.96% Near Daily Upper Limit for Fourth Straight Session—LG Group Involvement Stirs Speculation

As of mid-trading September 10, THE CODI Co., LTD. (224060) traded near KRW 9,890, up 29.96% from the previous session. This marks the stock's third trip to its daily upper limit this week. The KOSDAQ index, by contrast, opened down 0.64%. A single-stock story, not a market-wide move.

Four Trading Days—Why Such Explosive Gains?

The surge began September 7, when THE CODI gained 29.97%, then hit its daily upper limit (KRW 5,860) again on the 8th. Compared with the August 25 close of KRW 2,860, the stock has more than doubled. On September 9, it reached KRW 7,610, marking a new 52-week high.

Two factors are driving the rally. First is speculation over a change in controlling shareholders. THE CODI announced September 8 that it had switched the recipient of a KRW 7 billion third-party share issuance from K-Shin Growth Equity to Pantos Corporation. Pantos Corporation is chaired by Ku Bon-hoo, the third-generation leader of the LG conglomerate and chairman of Pantos Holdings. Securities analysts interpret this as a potential gateway to deeper LG conglomerate cooperation or ventures into robotics and artificial intelligence.

The second catalyst is the decision to issue KRW 30 billion in convertible bonds. The 11th issuance—bearer bonds with dividend rights, unsecured—will be equally subscribed by Goldmark Fund and Horizon Fund at KRW 15 billion each. THE CODI stated it will deploy the proceeds to acquire securities in other companies.

In essence, overlapping narratives are fueling the rally: potential LG conglomerate involvement and a controlling-shareholder shift via third-party share issuance, paired with a KRW 30 billion CB that could finance acquisitions of stakes in other companies.

What Does This Company Do?

THE CODI manufactures semiconductor and display equipment, producing cleaning and coating/development tools primarily for Samsung Group semiconductor and display fabrication lines. For fiscal 2025, revenue totaled KRW 25.3 billion and operating loss was KRW 800 million. Though the operating loss contracted 77.6% year-over-year, the company remained unprofitable.

Market capitalization now hovers around KRW 40 billion. A micro-cap company—which creates regulatory exposure.

A Hidden Track Record Shadows This Rally

On August 31, THE CODI posted notice of potential delisting review, as its market cap had fallen below the KRW 20 billion KOSDAQ minimum threshold. KOSDAQ raised this threshold effective July 2025. Sustained failure to clear it for 30 consecutive trading days triggers management-status designation. The current rally has temporarily pushed the cap above the threshold, easing delisting pressure—for now.

However, there is a longer pattern. Within the past three years, THE CODI has received four notices of potential delinquent-disclosure designation, completed 13 CB conversion-price adjustments (repricing actions), executed seven share issuances, and issued four convertible bond offerings. In April 2025, the company disclosed allegations of embezzlement and breach of fiduciary duty. It has posted operating losses for eight consecutive years. The repeated cycle of capital raises and disclosure amendments warrants viewing this CB and share issuance as part of an established pattern.

Should the full KRW 30 billion CB convert, approximately 8.45 million new shares will enter circulation. Conversion price is KRW 3,550 per share. With the stock trading well above that level, bondholders have immediate incentive to convert—and doing so will dilute existing shareholders proportionally.

Date	Close/Change	Notes
8/25	KRW 2,860	Before Rally
9/7	+29.97%	1st Daily Upper Limit
9/8	KRW 5,860 (+29.93%)	2nd Daily Upper Limit; CB and Share Issuance Recipient Change Announced
9/9	KRW 7,610 (+29.86%)	52-Week High
9/10 Mid-Session	Near KRW 9,890 (+29.96%)	4th Day of Rally

The Bottom Line

In four trading sessions, the stock has nearly tripled. The catalysts are plain. So are the risks. An LG conglomerate-connected figure has surfaced as a likely controlling shareholder, and KRW 30 billion in CB funding is now secured. Yet THE CODI is a micro-cap that was struggling to clear the KOSDAQ minimum market-cap bar, with a documented history of delinquent-disclosure warnings, repeated CB repricing, and embezzlement allegations. Positive catalysts and red flags inhabit the same stock.

What to watch: First, whether Pantos Corporation's scheduled share issuance closing (September 22) actually occurs and whether the controlling-shareholder transition completes as announced. Second, how the stock price moves relative to the CB conversion price (KRW 3,550), which will signal the timing and scale of dilution risk from conversion-driven supply hitting the market.

This article is provided for informational purposes and does not constitute a recommendation to buy or sell this security.

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