Setopia Withdraws Securities Disposal of Malaysian Ride-Sharing Platform DMD Technology

Setopia announced on the 30th that it has withdrawn its decision to dispose of shares in another corporation, DMD TECHNOLOGY SDN BHD, which it had been planning to sell.

In 2020, Setopia decided to sell 19,500 shares of DMD TECHNOLOGY (a 19.5% stake) for approximately 3 billion KRW. The former management of Setopia had acquired the shares in DMD TECHNOLOGY in 2019 to promote a vehicle-sharing business.

DMD TECHNOLOGY operates a ride-sharing platform in Malaysia. Although it was expected that the business situation would improve after the COVID-19 pandemic ended, the prolonged pandemic has worsened DMD TECHNOLOGY’s management situation, making disposal impossible.

A Setopia representative stated, “The vehicle-sharing platform business was a project initiated by the former management, and the current management decided to sell it to focus on the current business. However, due to the deterioration of DMD TECHNOLOGY’s management, disposal has become impossible, and we are inevitably unable to proceed with the disposal decision. There will be no financial loss resulting from the withdrawal of the sale.”