"Dongsung Pharmaceutical in Crisis: The Key to Recovery Lies in Transparent Communication and Determination to Act"

Dongsung Pharmaceutical announced on October 28 that, as court receivership proceedings are underway, it will hold two management normalization briefing sessions for minority shareholders and creditors.

A representative from Brand Refactoring, the largest shareholder of Dongsung Pharmaceutical, stated, "Dongsung Pharmaceutical is now at a critical crossroads, where not only a simple financial crisis but also the very existence of the company and the rights of stakeholders are at stake." He added, "This event will serve as a litmus test to gauge the company's sincerity in taking responsibility for its own future, going beyond a mere formal announcement."

The briefing sessions will be held twice: on October 29 at the Seoul Bar Association Hall, and on November 5 at the Life Mission Building, both starting at 2:00 PM. The core elements and execution strategies of the rehabilitation plan will be presented.

What makes this briefing particularly noteworthy is that Brand Refactoring, the largest shareholder of Dongsung Pharmaceutical, is not just a passive investor but is actively pursuing a self-directed rehabilitation model under a structure that assumes direct management responsibility.

They plan to present a blueprint that avoids the "pre-approval M&A" approach focused on external sales, instead aiming to revive the company while preserving the equity of existing shareholders. The core strategy is not short-term fundraising, but rather fundamental restructuring through an AI-based management system and brand rebuilding.

At the center of this is a data-driven system called "BR-AIN," owned by Brand Refactoring. This platform, which is meticulously designed for demand forecasting, product renewal, and distribution strategies, has already been proven in other affiliates and is expected to become a powerful tool for Dongsung Pharmaceutical's normalization.

On the financial side, they are preparing a capital increase of approximately 20 billion won and are simultaneously carrying out voluntary restructuring within the range permitted by the court. The key point is that this structure focuses on maintaining the ability to repay creditors while also protecting the rights of existing shareholders.

Given that the interests of nearly 20,000 minority shareholders are at stake, this briefing is expected to go beyond a simple investment presentation and become a platform for persuading stakeholders to protect shareholder equity.

Baek Seohyun, CEO of Brand Refactoring, stated, "We will restore Dongsung Pharmaceutical to the center of the Korean pharmaceutical market," adding, "We will listen directly to the voices of shareholders and creditors and transparently share all strategies so that this briefing can be the first step."

He continued, "Ultimately, the restoration of corporate trust begins with 'people.' Brand Refactoring is clarifying accountability, including taking legal action against the former management, and if responsible management by the new leadership is combined with transparent information disclosure, it will enable not only the rehabilitation process but also a moral rebuilding of the company."