Paratech Recovers 20 Billion KRW Lent by Former Executives to Affiliates... "Improving Financial Soundness"

[Asia Economy Reporter Jang Hyowon] Paratech (CEO Jung Kwangwon), the top company in fire-related sales, announced on the 18th that it has fully recovered approximately 20 billion KRW lent by the previous management to the former major shareholder Base HD and its affiliates.

Paratech had previously recovered 1.1 billion KRW by the end of last year, including 500 million KRW from Taeheung Industry and 600 million KRW from Lbase Systems. By the 10th of this month, it received repayment of the remaining 18.91 billion KRW plus interest, completely recovering funds from the former major shareholder’s related companies.

As a result, Paratech’s debt ratio significantly improved from 130% last year to 82%, and the current ratio improved from 110% to 150%, greatly enhancing financial soundness.

Most importantly, with the substantial cleanup of complex financial transactions with companies related to the former major shareholder, risks related to affiliates have been completely eliminated, creating conditions to focus on its core fire-related business.

Additionally, at the extraordinary general meeting of shareholders held on December 30 last year, Jung Kwangwon, Lee Honggwan, and Lee Jongjin were appointed as inside directors, and Jang Hwansuk and Choi Seungmin were appointed as outside director and auditor, respectively. The new management appointments and amendments to the articles of incorporation were finalized, and the company is now focusing on active structural changes centered on the newly established Strategic Planning Office.

Jung Kwangwon, CEO of Paratech, stated, “Based on liquidity of approximately 40 billion KRW, including the existing 20 billion KRW and the 20 billion KRW recovered this time, we plan to find new future growth engines.” He added, “We will also dispose of the remaining related assets of the former major shareholder within the first quarter to completely sever ties with the past management and present a new vision.”

In particular, CEO Jung said, “In the past, Paratech neglected management focused on small shareholders, including IR.” He expressed his desire to develop the company into one that communicates and shares information with small shareholders through active shareholder return policies and transparent information disclosure.

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