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Former Socar CEO Lee Jae-woong Withdraws Appointment as Non-Executive Director of U2Bio

[비즈한국] It has been confirmed that former Socar403550 CEO Lee Jae-woong has canceled his appointment as a non-executive director of U2Bio227840. Mr. Lee had previously acquired U2Bio and was scheduled to join the management board directly as a non-executive director. Instead, Mr. Lee is scheduled to take office as the Chairman of the Board at Socar this coming March. Analysts suggest that Mr. Lee may be shifting his focus toward Socar’s management rather than U2Bio.

Former CEO Lee Jae-woong became the largest shareholder of U2Bio in an individual capacity last year. U2Bio, a KOSDAQ-listed medical IT company, previously had NDS, an affiliate of the Nongshim Group, as its largest shareholder. However, as Mr. Lee participated in U2Bio’s paid-in capital increase, he surpassed NDS to become the largest shareholder. Although NDS initially opposed Mr. Lee’s participation in the capital increase, it subsequently decided to sell its stake, effectively relinquishing control of U2Bio.

Despite various turns of events, former CEO Lee Jae-woong gained control of U2Bio. U2Bio held an extraordinary general meeting of shareholders on December 31 last year. The meeting was originally planned to appoint Park Sang-wook, former CEO of StoryCity, as an executive director, and Lee Jae-woong as a non-executive director. StoryCity is the corporation that operates the travel community 'Travelholic'.

The U2Bio board of directors explained their rationale for appointing Lee Jae-woong as a non-executive director, stating, "As a venture entrepreneur who has led the IT, platform, and mobility industries, and as an executive at SOQRI, he possesses extensive experience and a vast network across the venture/startup ecosystem, investment, and corporate governance. Based on this background, he is considered the right person to provide independent checks and professional advisory services regarding new investment opportunities, portfolio company growth strategies, and the advancement of corporate governance."

Following the extraordinary shareholders' meeting, former CEO Park Sang-wook was officially appointed as an executive director of U2Bio. However, the appointment of former CEO Lee Jae-woong as a non-executive director was withdrawn. The reason cited was "personal circumstances" on the part of Mr. Lee. Mr. Lee, who was reported to have even drafted a blueprint for the company, including plans to transition U2Bio into a venture holding company, has decided not to join the U2Bio board.

Instead, former CEO Lee Jae-woong is expected to take office as the Chairman of the Board at Socar this coming March. Since stepping down as CEO of Socar in March 2020, Mr. Lee has not held any specific active roles. This has led to speculation that he relinquished his board seat at U2Bio to focus on managing Socar. Socar stated in this regard that they are unaware of the specific reasons, as Mr. Lee’s non-participation in the U2Bio board is a private matter.

Regardless of Mr. Lee’s board participation, significant changes are expected in U2Bio's management. At the extraordinary shareholders' meeting, U2Bio added several new business purposes, including: holding business (acquiring and owning shares of subsidiaries to participate in and guide their management); providing financial support to subsidiaries; mergers and acquisitions (M&A), spin-offs, business transfers, and restructuring; advisory and consulting services related to management, finance, strategy, and investments; equity investments and related activities; and management support services such as HR, finance, accounting, legal affairs, IT, PR, and marketing. This is interpreted as a move toward the venture holding company transition initially planned by Mr. Lee.