Skonec Overhauls Articles of Incorporation: Laying the Groundwork for Future Industry Entry and Capital Market Flexibility

Skonec Entertainment, an XR (Extended Reality) content and simulation-based technology company led by CEO Park Woncheol (hereafter "Skonec"), amended its articles of incorporation at an extraordinary general meeting of shareholders held on June 5. According to the company, this move lays the foundation for business diversification, improvement of funding structures, and entry into future new industries.

At this shareholders' meeting, Skonec deleted its previous business objectives related to blockchain and added a range of new business purposes, including: information and communications construction, real estate development and services, tourism resort and complex facility development, operation of sports and entertainment facilities, investment and investment advisory, e-commerce and mail-order sales, and non-ferrous metal refining and sales.

This reflects Skonec's strategic intention to expand beyond its current B2B and B2G-focused XR technology business, aiming to create new convergence models that combine real-world spaces and tangible assets. In particular, various business applications are anticipated, such as city development-type XR projects, tourism-oriented metaspaces, and real estate-IT convergence commerce platforms.

Another major change is the amendment to increase the total number of shares the company can issue from 100 million to 500 million, a fivefold increase. As a result, the company now has greater flexibility to utilize various funding methods in the future, such as paid-in capital increases, strategic alliances, and new share issuances to institutional investors.

Notably, the maximum issuance limit for convertible bonds (CB) and bonds with warrants (BW) has been increased tenfold, from 50 billion KRW to 500 billion KRW, enabling global-scale capital raising and the pursuit of large-scale projects. The scope of eligible recipients has also been expanded from "persons other than shareholders" to "specific persons including shareholders," broadening the range of potential collaborations with various stakeholders, including existing shareholders.

Additionally, by adding "improvement of financial structure" and "entry into new business areas" as requirements for issuing new shares and convertible bonds, the company can now design funding strategies not only for simple capital raising but also to achieve strategic corporate objectives.

Corporate governance has also been streamlined for greater management efficiency. The notice period for convening board meetings has been shortened from "three days in advance" to "one day in advance," enabling a decision-making structure that can respond quickly to rapidly changing internal and external business environments. This is expected to significantly enhance the company's agility, particularly in strategic investments, M&A, and the execution of large-scale projects.

Skonec has recently been refining its growth strategy around the practical expansion of XR technology, including the global launch of XR games, the development of large-space educational and training platforms, and entry into the defense and public sectors. Through this shareholders' meeting, the company is accelerating its transformation from a content-focused business structure to a comprehensive XR platform company that integrates technology and infrastructure, policy and region, investment and distribution.

At the same meeting, Moon Jeongho (currently CEO of BioVil and KSCCB Networks) and Kwak Sangwook, former Mayor of Osan, were newly appointed as inside director and outside director, respectively. The new inside director, Moon Jeongho, is an experienced management expert in the content and media sector, having previously served as Vice President of Kiwi Media Group and CEO of MediPartner Life Science. Skonec expects that the addition of Director Kwak will generate strategic synergy in expanding the public sector adoption of XR technology, building region-based XR platforms, and developing national and local government-linked projects such as smart cities. In particular, Skonec's large-space XR solutions focused on education, safety, and industrial training?areas where cooperation with government and local authorities is crucial?are expected to benefit significantly from Director Kwak's role. The company anticipates strengthened operational stability and enhanced investment attraction capabilities as it advances its XR content and platform business, global expansion strategy, and new business incubation.

A Skonec representative stated, "The era has arrived in which XR technology is no longer confined to indoor content, but is being integrated into urban safety, education, and industry as a whole," adding, "Director Kwak's policy experience and network will be a great asset in expanding Skonec's large-space XR and public projects."