Osstem Implant "Employee Embezzlement and Escape... Efforts to Minimize Damage" (Comprehensive)

[Asia Economy Reporter Ji Yeon-jin] On the 3rd, Osstem Implant stated regarding the embezzlement case involving nearly 190 billion KRW by a finance management employee, "This was not an organized crime but a solo crime exploiting the special position of the finance officer, and the individual is currently absconding and on the run."

According to Osstem Implant, the finance management employee, Mr. Lee, forged balance certificates within a short period and embezzled 188 billion KRW of company funds by transferring them to his personal bank and stock accounts. The embezzled amount corresponds to 92% of the company's equity capital and is the largest amount in the history of listed companies.

The company recognized this embezzlement case after confirming a cash flow issue on December 31 of last year and filed a complaint with the Seoul Southern District Prosecutors' Office through the Gangseo Police Station on the same day.

The company stated, "There was no problem with the control system operation, but it is currently understood that the crime was committed by manually adjusting the balance certificate system," adding, "Once the warrant is issued today, all related accounts will be frozen to recover most of the embezzled funds."

The company plans to recover the embezzled funds as much as possible but indicated that if recovery fails, it may recognize the loss as a net income loss for the previous year.

An Osstem Implant official said, "Domestic and international investors have shown enthusiastic support and trust, but we have disappointed them once again due to this unfortunate incident," and "we apologize for causing concern and damage to those involved in the market due to our negligence."

According to the Korea Exchange, the employee is presumed to be the same Mr. Lee (45), who attracted attention by purchasing a 7.62% stake (3,917,431 shares) in Dongjin Semichem on October 1 last year. The acquisition price of Mr. Lee’s Dongjin Semichem shares was 36,492 KRW per share, totaling approximately 143 billion KRW.

From November 18 to December 20 of the same year, Mr. Lee disposed of 3,367,431 shares. The average selling price was about 34,000 KRW, approximately 7% lower than the acquisition price. By selling the shares, Mr. Lee recovered 111.2 billion KRW in cash. It is reported that he still holds a 1.07% stake in Dongjin Semichem.

The stock price of Dongjin Semichem began a rally, rising 18.22% on December 21, the day after Mr. Lee sold his shares last year. It also rose 14.48% on December 30, reaching a new high and surpassing 51,000 KRW. The Korea Exchange is investigating, believing that the person who disclosed the acquisition and disposal of Dongjin Semichem shares is the same Mr. Lee involved in the Osstem Implant case. The Exchange has suspended trading of Osstem Implant’s shares from that day until a decision is made on whether to conduct a substantive review of the company’s listing eligibility.

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