Mesh Korea, hy Capital Increase Approved at Board Meeting

Approval of Share Transfer Agreement and Resolution of 80 Billion Won Capital Increase

[Asia Economy Reporter Kim Cheol-hyun] Mesh Korea (CEO Kim Hyung-seol) announced on the 8th that it is accelerating the sale process of hy (formerly Korea Yakult) by approving the subscription agreement and capital increase at the board of directors meeting.

Mesh Korea held a board meeting at its headquarters on the morning of the same day. Former CEO Yoo Jung-beom, an inside director, also attended the board meeting. The capital increase approved by the board amounts to approximately 80 billion KRW. Mesh Korea resolved a third-party allotment capital increase to hy for the urgent procurement of operating funds to normalize management. The 80 billion KRW capital increase proposal by the Kukbo Consortium, proposed by inside director Yoo Jung-beom, was rejected.

Mesh Korea plans to convene an extraordinary general meeting of shareholders at its headquarters on the 23rd of this month. At this meeting, the articles of incorporation will be amended to increase the total number of shares issued for hy's capital increase. Additionally, the agenda to dismiss former CEO Yoo from his position as inside director, appoint Chae Yoon-seo, Director of hy Investment Management Division, as an inside director, and appoint Byun Gyeong-gu, head of hy Investment Management Division, as auditor will be resolved.

Furthermore, Mesh Korea accepted the request to convene the extraordinary general meeting of shareholders made by former CEO Yoo, who holds more than 3% of the shares, and will also address the dismissal agenda against the current management proposed by former CEO Yoo on the same day.