Expanded Friendly Shareholding to 32.91%
Additional Major Shareholder Stakes Amid Unstable Market Conditions
Aggressive Investments Announced in Blockchain and Brand Aggregators
[Asia Economy Reporter Kwangho Lee] FSN, a KOSDAQ-listed company, will conduct a paid-in capital increase with the direct participation of co-CEOs Lee Sang-seok and Seo Jeong-gyo to strengthen management rights and realize responsible management.
On the 24th, FSN announced through a public disclosure that it has decided on a third-party allotment paid-in capital increase worth 12 billion KRW (3,773,584 shares). The secured funds will be actively invested in new businesses FSN is engaged in, such as blockchain and brand aggregating.
Co-CEOs Lee Sang-seok and Seo Jeong-gyo will participate in this capital increase with a total of 6 billion KRW (1,886,792 shares). Geno Investment Asia will also participate in the capital increase with the same amount. The new shares will be issued at 3,180 KRW per share, and the expected listing date of the new shares is November 16.
Geno Investment Asia, which participated in the paid-in capital increase alongside the two co-CEOs, is a subsidiary of Geno Holdings, a major partner of FSN. In March, it acquired 400,000 shares of FSN and continuously built a friendly relationship with FSN by delegating voting rights to FSN’s management. To continue collaboration between the two companies, it also participated in this capital increase. The voting rights of Geno Investment Asia secured through this capital increase will also be delegated to FSN’s management as a sign of trust.
FSN explained that through this capital increase, it can strengthen management rights and realize responsible management while preparing for unstable market conditions. With both co-CEOs participating in the capital increase, the shareholding ratio of FSN’s management has increased, and with Geno Investment Asia included as a friendly shareholder, the shareholding ratio of ‘J2B,’ FSN’s largest shareholder and main management alliance, and its related parties has expanded from the previous 23.83% to 32.91%.
Based on the raised funds, FSN plans to actively invest in its new businesses. Currently, FSN is successfully expanding its business areas beyond its existing digital marketing business to include blockchain and brand aggregator sectors. The blockchain business has launched Sunmiya Club and Bellygom NFT and is developing them into leading domestic PFP NFT projects. The brand aggregator business is also growing alongside partners by providing integrated accelerating services to about ten partner companies through its subsidiary Boosters.
Co-CEO Seo Jeong-gyo of FSN said, "I directly participated in this capital increase to realize responsible management and strengthen management rights, and with Geno Investment Asia participating as a friendly shareholder, we have secured more than 30% of friendly shares. We plan to actively invest the secured funds in blockchain, brand aggregator, and other areas to rapidly grow our new businesses."
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