"Cut Chairman's Compensation and Proceed with Paid-in Capital Increase"… Daol Securities' Second Largest Shareholder Sends Shareholder Letter

Daol Securities Reports Operating Loss for Fourth Consecutive Quarter
CEO Kim Gisu's Side: "Liquidity Risk Persists, Capital Expansion Needed"

Kim Ki-su, CEO of Presto Investment Advisory and the second largest shareholder of Daol Investment & Securities, sent a shareholder letter to Daol Investment & Securities on the 19th requesting the recovery of Chairman Lee Byung-chul's performance bonuses, reduction of remuneration, and a rights offering.

Presto Investment Advisory issued a press release on the same day stating, "Daol Investment & Securities has recorded operating losses for four consecutive quarters since the fourth quarter of last year, with the scale of losses rapidly deepening. However, Chairman Lee had the highest salary excluding performance bonuses among 22 securities firms that disclosed individual salaries last year," adding, "As part of responsible management, Chairman Lee's remuneration should be reduced next year to share the pain with shareholders and employees."

Daol Investment & Securities posted an operating loss of 66.7 billion KRW on a consolidated basis through the third quarter of this year. This marks four consecutive quarters of operating losses since the fourth quarter of last year.

Presto Investment Advisory also requested that if there are any deferred performance bonuses not yet paid or performance bonuses to be paid this year, these should be deducted or not paid, and that performance bonuses already paid to Chairman Lee should be recovered.

Furthermore, they proposed capital expansion through a rights offering or other means. As of the end of the third quarter, Daol Investment & Securities' net capital ratio stood at 274.33%, placing it among the lowest ranks along with SangSangIn Securities and Cape Investment & Securities among 27 domestic securities firms.

Presto Investment Advisory stated, "In a situation where liquidity-related risks persist, such as the maturity of extended real estate PF (project financing) exposures approaching again, we propose capital expansion through methods such as a rights offering involving the participation of the largest shareholder."

Daol Investment & Securities did not comment on this matter.

Earlier, CEO Kim intensively purchased shares immediately after the Daol Investment & Securities stock price plummeted due to the 'SG Securities-triggered crash' on April 24, rising to the position of the second largest shareholder after Chairman Lee and related parties.

On September 20, CEO Kim announced a change in the purpose of holding Daol Investment & Securities shares from "general investment" to "management influence."

Last month, after requesting to inspect Daol Investment & Securities' accounting books and some documents were not disclosed, he filed a provisional injunction with the Seoul Southern District Court to inspect and copy the accounting books.

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