② National Treasure, Delayed 50 Billion Capital Increase... Management Item 'On the Edge'

[Asia Economy Reporter Jang Hyowon] Kookbo (formerly Karis Kookbo) stands at a crossroads regarding designation as a management stock. It currently has 14 penalty points, just one point short of the 15-point threshold for management stock designation, while the schedule and details of its capital increase have been changed multiple times.

◆If 1 More Penalty Point Is Added, Designation as Management Stock Will Follow

According to the Financial Supervisory Service's electronic disclosure on the 12th, Kookbo decided last November to conduct a third-party allotment capital increase worth 50 billion KRW targeting 'Coresend'. The capital increase was intended to acquire Heung-A Shipping. Coresend is a limited liability company with a capital of 50 million KRW, so it needed to raise external funds to secure 50 billion KRW.

However, Coresend suddenly postponed the payment date for the capital increase from December 20 last year to one month later. Subsequently, on December 26, Kookbo announced that the acquisition of Heung-A Shipping had fallen through. Kookbo explained that the capital increase did not proceed because the acquisition contract was canceled.

Then, on the 28th of last month, one day before the new payment date, Kookbo issued another revised disclosure on the capital increase. The allottee was changed to 'Buksi Busan', and the payment date was postponed to April 28.

With the payment date delayed twice and the allottee changed, doubts have arisen about the success of the capital increase. If the capital increase is withdrawn or the amount is reduced by 10 billion KRW or more, Kookbo will receive penalty points from the Korea Exchange.

If even one penalty point is added, Kookbo will be designated as a management stock. According to the Korea Exchange, KOSPI-listed companies with cumulative penalty points of 15 or more for disclosure violations within the past year are designated as management stocks. Repeated reasons for management stock designation can lead to delisting.

Kookbo previously received 14 penalty points. On November 15 last year, Kookbo was penalized 5 points and fined 50 million KRW after its supply contract with its largest shareholder Karis was canceled. Additionally, on December 24, last year, Kookbo received 9 penalty points and a 70 million KRW fine on the 22nd of last month for canceling the acquisition of Heung-A Shipping and delaying its disclosure.

◆Can Buksi Busan Raise 50 Billion KRW?

The market's attention is focused on whether Buksi Busan can raise 50 billion KRW and inject it into Kookbo by April 28. Buksi Busan is a newly established corporation formed on the 13th of last month. It was created to facilitate Buksi's entry into Busan for its 11-15 passenger rental van call service business.

Buksi Busan has a capital of 1.2 billion KRW, with its largest shareholder being BS Partners Investment, holding 41.66% of shares. BS Partners Investment is a newly established venture capital company founded last October with a capital of 2 billion KRW. The remaining shares of Buksi Busan were invested by Kookbo and Buksi CEO Lee Taehee, respectively. Additionally, business partner iPartner plans to contribute about 300 million KRW more.

To pay the capital increase amount to Kookbo on time, Buksi Busan must raise an additional 48.5 billion KRW over the next two months.

If Buksi Busan raises this capital through borrowings without corresponding collateral, most of the Kookbo shares acquired through the capital increase are likely to be pledged as collateral. Since Buksi Busan will become the largest shareholder holding 50.7% of Kookbo shares upon payment, a drop in stock price could trigger forced sales and a change in the largest shareholder.

Therefore, Buksi Busan plans to raise funds through a direct capital increase into Buksi Busan itself. However, the success of the capital increase is uncertain as Buksi is currently involved in ongoing litigation. If the lawsuit proceeds to the third trial, it may take a long time to reach a verdict. In that case, Buksi's business uncertainty will persist, making it difficult to attract investors.

Lee Taehee, CEO of Buksi, said, "Buksi will operate its business in Busan in cooperation with taxi drivers and taxi companies, so it is different from Tada," and added, "We expect to raise sufficient funds by the capital increase payment date in April."

This content was produced with the assistance of AI translation services.