Eom Taegwan, CEO of Osstem Implant, "Financial Deterioration Temporary... Abundant Cash Liquidity"

[Asia Economy Reporter Jang Hyowon] Um Taegwan, CEO of Osstem Implant, stated that the cash liquidity is abundant and the financial deterioration will be temporary in relation to the 188 billion KRW embezzlement case by an employee.

On the 5th, CEO Um said in a statement, “Osstem Implant immediately reported the damage to the police on the 31st of last month, and as of now, it appears to be a solo crime caused by the personal deviation of the company’s finance team leader,” adding, “A warrant was issued on the 3rd, and the police are currently conducting arrest activities including travel bans, account freezes, and securing the suspect.”

CEO Um claimed that although the embezzlement amount is large, it does not seriously damage Osstem’s financial condition.

He explained, “The embezzled amount is 188 billion KRW, which is 91.8% of the equity capital as of 2020, but based on the expected equity capital at the end of last year, it is about 59%. Even if the entire 188 billion KRW is recorded as a loss, the net income for the current period would be recorded as a deficit of several billion KRW,” he said.

He continued, “A significant portion of the embezzled amount is expected to be recovered soon, and the amount will increase as the embezzled money is returned. Although the net income last year was a small figure, there is a possibility it will be recorded as a surplus, and a substantial part of the embezzled money is expected to be recovered through police investigation, so the deterioration of the financial statements could be temporary,” he emphasized.

Furthermore, he stated that Osstem’s cash liquidity is abundant. He claimed, “As of the end of the third quarter last year, excluding the embezzled amount, we hold over 100 billion KRW in cash equivalents, and the overseas subsidiaries hold cash equivalents amounting to 140 billion KRW, totaling more than 240 billion KRW.”

He also said that the company’s management activities remain unchanged and that measures to prevent recurrence will be established.

He said, “Regarding the timing of resuming Osstem Implant’s stock trading, it will be decided according to the review and judgment of the exchange. Our company deeply reflects on this incident and will strengthen the internal control system to establish and implement perfect recurrence prevention measures and a firm management improvement plan to do our best to advance the timing of resuming trading.”

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