③Arion, Who Are the Recipients of the 25 Billion Won Capital Increase?

[Asia Economy Reporter Jang Hyowon] As market attention focuses on the success or failure of Arion's 25 billion KRW paid-in capital increase, curiosity about the subscribers of the capital increase is also growing.

Among the subscribers, the foreign investors include the representative of Arion's European subsidiary, and the foreign company is identified as a company related to the European subsidiary's representative. The Korean company investing 5 billion KRW is confirmed to be a nominal company established by Arion's existing shareholders.

According to the Financial Supervisory Service's electronic disclosure on the 4th, Arion changed the subscribers of the 25 billion KRW paid-in capital increase to ‘Inchora Limited’, ‘RAZA MAHMOOD KHAWAJA ANSARI’, ‘Euclid Investment’, and ‘RA Media AS’. The payment date was also postponed to the 12th.

Except for Euclid Investment, all are foreign corporations or foreigners. Euclid Investment is raising 5 billion KRW, and the remaining corporations and individual are investing 20 billion KRW.

Inchora Limited was established in 2011 under the name ‘BLN HOLDINGS’. It is known as a company operating housing finance and digital platforms in the UK. As of the end of last year, it recorded sales of 18.4 billion KRW and a net loss of 2.1 billion KRW. The capital erosion rate is 44.3%. However, Arion stated that Inchora is continuously receiving investments and has abundant liquidity.

RA Media AS is a Norwegian company established in 2015 with a capital of 30,000 NOK (approximately 3.8 million KRW). As of the end of 2018, it recorded sales of 220 million KRW and a net profit of 15 million KRW. With total assets of 153,000 NOK (approximately 20 million KRW), it is in a state of complete capital erosion.

RAZA MAHMOOD KHAWAJA ANSARI is the CEO of RA Media AS and a major shareholder holding 50% of the shares. Previously, RAZA attempted to participate in Arion's capital increase through ‘CORE TV SOLUTIONS LIMITED’, where he was the CEO, but on the 27th, he changed to participate directly.

RAZA is also the representative of Arion's European subsidiary. On December 12 last year, Arion established a company called ‘ARION EUROPE LIMITED’ in the UK. This was the first overseas office established in three years after withdrawing all overseas branches and liaison offices in 2017.

The only Korean company, Euclid Investment, was established on August 20 last year with a capital of 10 million KRW. At the time of establishment, Director Jeon Sumi was appointed as an executive. Director Jeon was the CEO of SSJ Investment, a major shareholder of Arion, and the largest shareholder holding 48.7% of the shares of G&Plus.

Arion CEO Chae Myungjin explained, “The reason for canceling last year's capital increase and calling it again was to show sincerity to the exchange because the initial capital increase decision was delayed too much,” and added, “To successfully raise the full 25 billion KRW, funds from foreign corporations such as Inchora need to come in, but the situation has been halted due to COVID-19.”

Meanwhile, Arion decided on a 25 billion KRW paid-in capital increase on September 4 last year, and the payment date will reach six months on the 19th. If a KOSDAQ-listed company delays a paid-in capital increase for more than six months, it receives penalty points. If the penalty points exceed 15, the company becomes subject to a substantial review of listing eligibility. Arion currently has 9 penalty points.

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