'Dong Sung Pharm Under Court Receivership Faces 17.7 Billion KRW Embezzlement'

Dong Sung Pharm has been accused of embezzlement amounting to 17.7 billion KRW, which is equivalent to 30.6% of its equity capital.

On June 25, Dong Sung Pharm announced in a public disclosure that on June 24, auditor Ko Chantae filed a complaint with the Dobong Police Station in Seoul against three executives, including CEO Na Wonkyun and two registered directors, on charges of embezzlement and breach of trust.

Dong Sung Pharm stated that it plans to take appropriate measures regarding all matters related to this case in accordance with due process, and that it will actively cooperate with the investigations conducted by the relevant authorities.

Previously, Dong Sung Pharm filed for corporate rehabilitation procedures (court receivership) on May 7 and entered into rehabilitation proceedings on June 23.

CEO Na is reportedly engaged in a management dispute with former largest shareholder and second-generation owner, Chairman Lee Yangku. On April 22, Chairman Lee sold his 14.12% stake to Brand Refactoring, a marketing specialist company, resulting in Brand Refactoring becoming the largest shareholder of Dong Sung Pharm.