Daewoong Pharmaceutical "Report External Pressure Controversy Clarified"..."Will Comply If System Established"

Daewoong Pharmaceutical recently addressed the controversy over 'report pressure' on SK Securities, stating, "It has been clarified that the action was an unavoidable choice to prevent damage to small investors," and added, "If a systematic measure is established to address the grievances of companies caused by incorrect securities reports, as pointed out during the National Assembly audit, we will actively comply," on the 18th.

Seung-ho Jeon, CEO of Daewoong Pharmaceutical

At the National Assembly's Political Affairs Committee audit held on the 17th at the Financial Supervisory Service in Yeouido, Yeongdeungpo-gu, Seoul, Seung-ho Jeon, CEO of Daewoong Pharmaceutical, commented on the controversy over Daewoong Pharmaceutical's certified mail sent to SK Securities, saying, "There were very serious errors in the (securities firm report), so we responded with certified mail," and added, "If there is a better way, we will follow it well in the future."

Previously, Daewoong Pharmaceutical sent an official letter under the name of the former CEO to SK Securities, demanding an audit of the analyst who published the report related to Medytox, claiming that the report was not written from a balanced perspective. Daewoong Pharmaceutical has been involved in a dispute over the source of the Botulinum toxin (BTX) strains with Medytox. Subsequently, the controversy over 'pressure' arose as SK Securities did not publish a report containing Medytox's second-quarter performance.

Kim Jong-min, a member of the Democratic Party of Korea, stated during the audit that Daewoong Pharmaceutical's action was "a method that could infringe on the independence of stock market reports," but also said, "If a legal route is created for the company to properly explain itself, there would be no need to send certified mail," and requested Financial Supervisory Service Governor Bok-hyun Lee to create institutional proposals, saying, "I feel that the system is inadequate."

CEO Jeon responded, "I have had many concerns, but if a more concrete system is established, when such incidents recur, the process can proceed more objectively, fairly, and procedurally according to the system."

Daewoong Pharmaceutical Headquarters Exterior [Photo by Daewoong Pharmaceutical]

A Daewoong Pharmaceutical official explained, "The SK Securities certified mail issue was a measure taken believing that actively clarifying the situation and preventing damage to good pharmaceutical and bio investors is fulfilling the company's social responsibility," and added, "The problematic report was issued in early September, and the (pressure controversy) was proven to be groundless."

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