EM&I Wins Final Victory in Rehabilitation Bond Cancellation Lawsuit... "Reversal of Litigation Provision"

EM&I announced on the 1st that it has won the final lawsuit to cancel the confirmed rehabilitation bond judgment. As a result, the litigation provision of 480 million KRW reflected in the existing financial statements is expected to be reversed as non-operating income.

The Supreme Court ruled yesterday that EM&I has no obligation to repay the confirmed rehabilitation bond. In the first trial, the penalty was reduced and only a partial victory was achieved, but in the second and third trials, the court ruled in favor of the plaintiff (EM&I).

The Supreme Court dismissed the appeal, maintaining the lower court's ruling after considering both the lower court's judgment and the reasons for the appeal. With the lower court's ruling upheld by the Supreme Court, EM&I is relieved of the obligation to repay the bond, and the litigation provision of 480 million KRW will be reversed.

A company official stated, "Due to illegal acts by former management personnel during the KJ Pretech era, we have denied the rehabilitation bonds reported independently of the company during the rehabilitation process," and added, "The Supreme Court recognized that the company has no obligation to repay these bonds."

He continued, "The previously reflected litigation provision will be reversed as non-operating income, which is expected to have a positive impact on this year's performance," and said, "With this lawsuit concluded, all major litigation cases of the company have been resolved, allowing us to focus on our core business and ongoing new projects."

EM&I has won lawsuits that have been ongoing since 2019 and has now concluded all pending litigation cases. The company plans to hold an extraordinary general meeting in September to resolve matters including the coverage of capital reserve deficits and amendments to the articles of incorporation to add business purposes such as electric two-wheeler distribution and secondary battery material development.

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