Insiders Selling at Silicon2: Negative Impact on Share Price

• Insiders have been selling at Silicon2 (257720 KS). The company's CEO Kim Seong-Woon and other related parties sold 0.37 million shares (0.6% stake) in June 2025.

• Overall, we are concerned about this recent insider selling at Silicon2. We are lowering our rating on Silicon2 to Negative over the next 6-12 months.

• Silicon2 needs to introduce new cosmetic brands such as Joseon Beauty, Round Lab, and Anua that could become very popular on a regular basis. However, that could be a challenge.

Source: Silicon2

Insiders have been selling at Silicon2 (257720 KS). The company's CEO Kim Seong-Woon and other related parties sold 0.37 million shares (0.6% stake) in June 2025.The CEO Kim Seong-Woon sold 0.12 million shares other insiders/related parties sold the remaining 0.25 million shares. The total amount of insiders/related party selling was 24 billion won ($18 million) in June 2025.

The CEO's partial sale of the company is partly related to inheritance taxes. Nonetheless, the sale of shares by other insiders/related parties were probably due to just profit taking, capitalizing on the recent surge in share price.

Overall, we are concerned about this recent insider selling at Silicon2. Despite improving sales and profits, this insider selling signals a major red flag.

Major insiders/related parties who sold shares in Silicon2 in June 2025

Sale of Silicon2 shares by insiders in June 2025 (Source: dart.fss.or.kr)

Conclusion First

The recent insiders selling at Silicon2 definitely puts some cold water on the recent share price surge.In addition, despite improving sales and profits, the company's valuation multiples have reached much higher levels.

Furthermore, we are concerned about the three major business challenges for Silicon2:

• Once small and medium sized indie cosmetics companies become bigger, they are likely to have greater financial resources allowing them to export their products directly, rather than through intermediaries such as through StyleKorean platform.

• Other larger competitors such as Amorepacific and LG H&H are likely to place much greater importance on the SNS and influencers to sell their products going forward.

• Silicon2 needs to introduce new cosmetic brands such as Joseon Beauty, Cosrx, Round Lab, and Anua that could become very popular on a regular basis. However, that could be a challenge.

Therefore, we are reducing our rating of the company to Negative over the next 6-12 months.