Dong Sung Pharmaceutical's Largest Shareholder Brand Refactoring Ramps Up Efforts to Resume Trading, "Shareholder Value Is the Top Priority"

Brand Refactoring, the largest shareholder of Dong Sung Pharmaceutical, announced on August 18 that it is making every effort to resume trading in order to protect shareholder value.

Dong Sung Pharmaceutical is currently facing a situation where only shareholders and employees are suffering due to a series of defaults and trading suspension stemming from a management rights dispute among the owner family, as well as allegations of embezzlement and breach of trust, and delays in the extraordinary general meeting caused by the company's rehabilitation process. Brand Refactoring, the largest shareholder, plans to have the entire current management team, who are the main reason for the trading suspension, resign at the extraordinary general meeting scheduled for September 12. The company aims to expedite the lifting of the trading suspension and the normalization of management by prioritizing shareholder value and ensuring that all agenda items proposed at the meeting are passed as originally intended.

A Brand Refactoring representative stated, "There have been cases where management rights were defended during rehabilitation procedures by utilizing capital reduction and other measures. It is highly unusual for a listed company with net assets of approximately 60 billion KRW to file for rehabilitation due to a promissory note default of just 100 million KRW. With the current management remaining as 'controllers' of the rehabilitation process, it is difficult to guarantee fairness and transparency."

The company's trading suspension occurred twice. On May 7, CEO Na Wonkyun and the current management filed for rehabilitation proceedings citing liabilities of only 100 million KRW. Brand Refactoring regards this as an attempt to defend management rights through a 'deliberate default.' Immediately following this decision, the stock price plummeted from the 4,000 KRW range to 2,780 KRW, resulting in the first trading suspension.

Immediately after trading resumed on June 24, Ko Chantae, the auditor of Dong Sung Pharmaceutical, filed a criminal complaint against the current management for embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, which led to the second trading suspension. Brand Refactoring emphasized, "Since the direct cause of the trading suspension lies in the criminal allegations against the current management, their immediate dismissal is unavoidable to protect shareholders."

A Brand Refactoring representative said, "The current management is suspected of abusing the rehabilitation process and misappropriating company funds for personal use. The only solution to resolve uncertainty and distrust is to replace the management through a shareholders' meeting."

The representative added, "We will transition to a transparent and lawful management system, exit the rehabilitation process, and restore Dong Sung Pharmaceutical's market competitiveness by restructuring the brand and expanding new businesses. At the same time, we will prioritize shareholder value and focus on enhancing both shareholder and corporate value."

Meanwhile, at the extraordinary general meeting scheduled for September 12, Dong Sung Pharmaceutical will propose changes to the articles of incorporation, such as changing the number of directors and deleting certain provisions, the dismissal of current directors, and the appointment of new directors and auditors.

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