The law firm Kim Kwang-sik has expressed his opinion on the legal issues related to the recent stock price decline and management risk situation of Joyworks & Co., reported by The Korea Economic Daily.

The KOSDAQ-listed company Joyworks & Co., despite the sales growth and expectations from the offline distribution of the running shoes brand HOKA, saw its stock price plummet to an all-time low due to the controversy surrounding the representative's assault on subcontractor employees, which led to the termination of its distribution contract with the US headquarters. In just 7 months, its stock price dropped by about 68%, heightening investor anxiety.

This situation goes beyond simple management risks and leads to issues of brand trust and legal stability of contractual relationships, deeply affecting both investors and the company. Interestingly, there are concerns that investors may exercise their 'put option (early redemption right)' due to the falling stock price of the convertible bonds (CB) issued by Joyworks & Co., raising worries about the financial ripple effects.

Attorney Kim Kwang-sik commented on this incident, saying, "Regardless of the establishment of assault charges against former CEO Cho, it is difficult to consider separate crimes such as breach of trust that make the company a victim," adding that "it is difficult to determine that former CEO Cho intentionally assaulted subcontractor employees to terminate the contract with HOKA."

This situation goes beyond simple management risks and leads to issues of brand trust and legal stability of contractual relationships, deeply affecting both investors and the company. Especially if the current decline in stock prices continues, there is a possibility that investors of the convertible bonds (CB) issued by Joyworks & Co. may exercise their 'put option (early redemption right)', raising concerns about financial ripple effects as well.

For more details, you can check the full article published in The Korea Economic Daily.
Article from The Korea Economic Daily: https://www.hankyung.com/article/2026010919356