Baion Reports CEO Ryu Jin-hyung and Executives for Embezzlement and Breach of Trust

"Questions Over G&Equity's 1.5 Billion Investment"
"No Money Even for Employee Salaries"

It has been confirmed that the auditor and inside director of KOSDAQ-listed company Baion have filed a complaint against CEO Ryu Jin-hyung and other executives for embezzlement and breach of trust.

According to the financial investment industry on the 3rd, Baion's auditor Lee Soo-yeon and inside director Seo Dong-il filed a complaint at the Gangnam Police Station in Seoul on the 31st of last month, accusing Baion CEO Ryu Jin-hyung, inside director Jung Min-ho, outside director Jung Haeng-joo, auditor Choi Yong-seok, and G&Equity CEO Park Sun-hee of embezzlement and breach of trust.

According to the complaint, Baion established a company called "G&Equity" on July 4th last year by investing 1.5 billion KRW for the purpose of "real estate leasing and sales," which is unrelated to the company's business objectives and articles of incorporation.

The complainants pointed out that G&Equity has no business connection with Baion and that the composition of its registered directors is unrelated to the company.

In response, the complainants sent a certified letter to Baion on the 16th of last month requesting detailed usage records of the 1.5 billion KRW investment, corporate card issuance details, employee status, salary information, and contracts related to the establishment of G&Equity, but claimed that it was ignored.

Through the certified letter, the complainants stated, "At that time, Baion's cash liquidity was so poor that there were concerns about employee salaries," and demanded, "We request an explanation from the directors who resolved the matter at the board meeting as to why such a large sum of 1.5 billion KRW was invested."

They also said, "The executives and CEO of G&Equity are composed of individuals who have no relation to Baion," and requested, "We ask for objective materials that can verify what their duties were and what professional experience was considered beneficial to G&Equity."

In response, Baion CEO Ryu Jin-hyung said, "I am aware of the complaint filing," and added, "There is nothing further to disclose."

Meanwhile, Baion plans to hold an extraordinary general meeting of shareholders on the 16th to discuss the dismissal of inside director Seo Dong-il, amendments to the articles of incorporation, and the appointment of new directors.