Melpas, Internal Executive Conflicts... Management Normalization Halted

[Asia Economy Reporter Jang Hyowon] Internal conflicts among executives have also surfaced at Melpas, a KOSDAQ-listed company suffering from a management rights dispute, adding pressure on Melpas as it prepares to attract new investments and enter new business ventures.

According to industry sources on the 21st, Melpas received a certified letter from an investor who participated in a third-party allotment capital increase worth 10 billion KRW on the 13th. The letter requested the board of directors to convene a meeting to resolve agenda items such as amending the articles of incorporation, dismissing directors, and appointing new ones, in accordance with the investment contract.

Earlier, Melpas announced on the 13th that the payment for the 10 billion KRW capital increase had been completed. After initially deciding on the capital increase in August last year, the process had been delayed for several months due to the management rights dispute, but this time the company succeeded in attracting investors.

This investment is known to have been secured by CEO Kang Jeonghoon. Subsequently, Melpas planned to raise an additional 40 billion KRW to repay 17 billion KRW in borrowings and to enter new business areas.

However, other board members besides CEO Kang have not participated in the board meetings and are not cooperating, putting all current management activities on hold.

CEO Kang stated, "Putting aside the management rights dispute, I hope the board of directors will make decisions solely for the benefit of the company."

Meanwhile, Melpas became embroiled in a management rights dispute last August when the largest shareholder changed to Miltop. Various lawsuits were filed, and bankruptcy petitions were submitted multiple times from outside parties. Nevertheless, Melpas received an 'unqualified' audit opinion last year, dispelling market concerns. As a result, the stock price, which had been trading in the 650 KRW range, rose to the mid-1,000 KRW range.

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