[비즈한국] The conflict between OSCOTEC039200 and its minority shareholders, which had persisted for about a year and a half, has entered a resolution phase following the annual general shareholders' meeting. The company’s decision to fully accept the shareholder union's proposals and appoint a new board of directors has heightened market expectations for improved management transparency. However, with significant challenges remaining—such as the inheritance of the late founder Kim Jung-keun’s shares and issues regarding the subsidiary Genosco—the leadership of the new board is expected to face a major test.
On the 30th, all agenda items proposed by the company were passed at OSCOTEC's 28th Annual General Shareholders' Meeting held at the Bio Park in Seongnam, Gyeonggi-do. Among these, the appointments of Kang Jin-hyung, a professor of oncology at Seoul St. Mary's Hospital (internal director candidate), and Lee Kyung-sub, a former judge at the Seoul Eastern District Court (outside director candidate), were originally proposed by the minority shareholder union and subsequently adopted by the company as official agenda items. The items were passed with an overwhelming approval rate of 82-99%, effectively signaling an end to the conflict between the two parties.
The market expects this meeting to serve as a turning point for improving OSCOTEC's governance and shareholder communication. In particular, the addition of new board members, such as lawyer Kim Gyu-sik, former head of the Korea Corporate Governance Forum, and Shin Dong-jun, former head of the Research Center at KB Securities, is expected to bolster efforts toward enhancing management transparency and expanding shareholder-friendly policies. In his opening remarks, Lee Sang-hyun, CEO of OSCOTEC, stated, “We will make the enhancement of shareholder value our most important duty. Specifically, for major issues related to our subsidiary Genosco, we will form a special committee consisting of outside experts, centered around outside directors, to improve objectivity and transparency.”
However, as Lee Ki-yoon, chairman of GK Asset, remains a second-largest shareholder with approximately 10% of the equity, the possibility of the conflict resurfacing depending on OSCOTEC's future performance cannot be ruled out. At the meeting, some minority shareholders raised questions reflecting concerns about Chairman Lee Ki-yoon's influence. One shareholder asked, “There have been allegations that Chairman Lee Ki-yoon pressured CEO Yoon Tae-young to resign; how much influence does he exert on OSCOTEC's management?” In response, Shin Dong-jun, Managing Director and CFO, strongly denied this, stating, “The board listens to the opinions of various shareholders, but we judge and decide in a direction suitable for the company for the benefit of all shareholders. There is no such thing as representing the interests of a specific shareholder.”
Questions were also raised regarding the potential for re-proposing an increase in authorized shares. OSCOTEC has maintained that it needs to increase the number of issued shares to secure funding for the 100% acquisition of Genosco. Although an amendment to the articles of incorporation to increase issued shares from 40 million to 50 million was proposed at last year's extraordinary general meeting, it was rejected due to opposition from minority shareholders. CEO Lee Sang-hyun replied, “While shareholders may have differing opinions on increasing authorized shares, it is the management’s duty to persuade opposing shareholders in the newly formed board, present a unified front, and re-propose the plan to attract good strategic investors (SI).”
The shareholder conflict at OSCOTEC emerged in October 2024 when the company filed for a preliminary screening for a special technology-based listing on the KOSDAQ for its U.S.-based drug development subsidiary, Genosco. At the time, minority shareholders strongly opposed the move, labeling it as a “split listing” or “duplicate listing” that would erode the core asset value of OSCOTEC. The intense confrontation led to the rejection of the reappointment of the company’s founder, then-CEO Kim Jung-keun, as an internal director at the annual meeting in March 2025.
A decisive factor that turned the tide was the sudden passing of former CEO Kim Jung-keun last month. Analysts suggest that with the disappearance of the company’s symbolic figure and rising concerns over a leadership vacuum, minority shareholders likely felt pressured to end the conflict. Ultimately, a dramatic agreement was reached as the company fully accepted the shareholders' demands, and the minority shareholder union reciprocated.
However, there are still many obstacles before management uncertainty is completely resolved. The issue of inheriting the 12.46% stake left by the late former CEO Kim Jung-keun remains. Other pending tasks include how the bereaved family will secure the massive inheritance tax, the resolution of Genosco shareholdings involving Genosco director Kim Sung-yeon (the eldest son of the late former CEO), and whether Kim Sung-yeon will join OSCOTEC. Managing Director Shin Dong-jun stated, “The inheritance tax is a private matter for the shareholders, so the company has no information on it. Whether director Kim Sung-yeon joins OSCOTEC is a matter to be decided by the board or a shareholders' meeting.”