Jeonjin Bio Pharm "5% Stake Joint Ownership Purpose Violation, Shareholder Proposal Directors Reject Opinions from Corporate Background... Inappropriate for Listed Company Executives"

[Asia Economy Reporter Hyunseok Yoo] Jeonjin BioPharm, which is expected to face a hostile merger and acquisition (M&A) at the regular shareholders' meeting, stated on the 16th that "the career backgrounds of the board members nominated by minority shareholders are not appropriate as executives of a listed company."

Mr. Seongwoo Lee holds approximately 300,000 shares of Jeonjin BioPharm under his name, as well as those of his spouse Yeonhwa Lee and his younger sister Mijeong Lee. According to the company, after disclosing a 5.09% large shareholding change report, Mr. Lee appears to be attempting a hostile M&A with minority shares to secure management rights.

Additionally, the company pointed out that if the combined shares of the friendly forces colluded with Mr. Lee in advance are sufficient for board member appointments, this would violate the Capital Markets Act, which requires disclosure of joint ownership purposes.

Meanwhile, Mr. Seongwoo Lee currently serves as the CEO of Yeongsan Asset. According to the company's articles of incorporation, its business purposes include lending and corporate M&A. Furthermore, SeoVis, where he previously served as CEO, also lists lending and corporate mergers and acquisitions in its articles of incorporation.

A representative of Jeonjin BioPharm said, "If the individuals recommended by the shareholders' proposal are competent and experienced, they should naturally be welcomed for the company's growth and development," but added, "If the person has been the CEO of multiple lending companies, it inevitably becomes a significant burden for other shareholders and the company in pursuing normal management." The representative further explained, "One of the individuals nominated by minority shareholders runs a company with only three employees and was the CEO of a company that received a disclaimer of opinion in the audit report last April, which is quite concerning."

Mr. Seokjo Bang, whose proposal was submitted by minority shareholders and is on the agenda for this shareholders' meeting, is currently the CEO of Jungwon C&D. This company, with two employees, received a disclaimer of opinion in its audit report last April.