Beat Rumors with 'Numbers,' Not 'Words' [Seoul Economic Daily]
James Choi, Managing Partner of y's partners, has published the latest installment of his column, The Principles of Crisis Response, in the Seoul Economic Daily. The topic of this column is 'Rumor Response.'
Rumors feed on denials. In November 2024, rumors about the Lotte Group's liquidity crisis spread rapidly through stock market rumors. Two days later, stock prices for three of its affiliates plummeted. Although the company issued a clarifying public disclosure on the very same day, it failed to stop the drop in stock prices. This is because a denial is merely an 'answer,' not 'proof.' Arriving faster than verified data, a denial always arrives alone—failing to soothe market anxiety.
Rumors are killed by 'numbers,' not refutations. It took nearly ten days for Lotte to release its liquidity figures and offer Lotte World Tower as collateral, during which the rumors grew even further. The speed of crisis response is not measured by how fast an official statement is released, but by how quickly concrete evidence is brought to light. Check out the latest column to read more about The Principles of Crisis Response.
