Dongsung Pharmaceutical, a company with a 68-year history, has filed for corporate rehabilitation proceedings (court receivership).
According to industry sources on May 8, Dongsung Pharmaceutical announced that it had applied to the Seoul Bankruptcy Court the previous day to initiate rehabilitation proceedings in order to normalize management and preserve its value as a going concern.
Dongsung Pharmaceutical, which produces the hair dye "Seven Eight" and the antidiarrheal "Jeongro-hwan," recorded an operating loss of 6.6 billion won last year, turning to a deficit. On April 22, Lee Yanggu, the former largest shareholder and second-generation owner, sold his 14.12% stake to Brand Refactoring, a marketing specialist company, resulting in Brand Refactoring becoming the new largest shareholder.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
