[비즈한국] In the family feud between the uncle (former Chairman Lee Yang-gu) and the nephew (CEO Na Won-kyun) of Dongsung Pharmaceutical002210, the uncle has claimed a technical victory. Four candidates recommended by Brand Refactoring, a brand consulting firm classified as being on the side of former Chairman Lee Yang-gu, were appointed as new directors. CEO Na Won-kyun, serving as the court-appointed rehabilitation receiver, stated his intention to remain committed to normalizing the company, signaling that he will not back down.
As a result of Dongsung Pharmaceutical's 69th extraordinary general meeting of shareholders held on the 12th at the O Cloud Hotel in Gangnam-gu, Seoul, four new directors—executive directors Han Myeong-ki, Yoo Young-il, and Lee Sang-chul, and outside director Won Tae-yeon, all recommended by Brand Refactoring—have joined the Dongsung Pharmaceutical board. Consequently, they will form the board alongside existing members CEO Na Won-kyun, Executive Director of Management Strategy Won Yong-in, and outside director Namgoong Kwang.
Some in the industry predict that now that Brand Refactoring holds a majority on the board, they will likely move to dismiss CEO Na and subsequently request the court to revoke his status as rehabilitation receiver. According to the Debtor Rehabilitation and Bankruptcy Act, the removal of a receiver is possible upon the application of interested parties such as creditors, shareholders, or equity holders, or by the court's own authority.
Despite these prospects, CEO Na has stated his position to do his best for the rehabilitation of Dongsung Pharmaceutical, including accelerating the pre-packaged M&A process. A Dongsung Pharmaceutical official also stated, “We will focus on improving our financial structure and strengthening management transparency under court supervision. We are fully committed to not only reducing costs through restructuring but also continuing business operations for revenue growth, in order to restore shareholder and market trust and maximize corporate value.”
Shin Sung-hwan, representative of the Minority Shareholder Solidarity, met after the extraordinary general meeting and said, “The number of directors has increased from 3 to 7, and with Brand Refactoring personnel forming the majority of the board, it is unclear whether things will proceed according to the existing management’s intentions.” He added, “From the perspective of shareholders, we must prevent our shares from being canceled, so we are opposed to CEO Na’s pursuit of a pre-rehabilitation M&A.”
Meanwhile, the extraordinary general meeting faced difficulties from the start. Although it was originally scheduled to open at 10 a.m., the opening declaration did not occur until 5 p.m. This was due to the lengthy process required to verify duplicate proxy registrations submitted by shareholders to exercise their voting rights. There were many complaints about the heat due to the small, cramped venue, and shouting matches broke out between shareholders as they vied for seating at the meeting.