Extraordinary Shareholders' Meeting Puts 405 Billion KRW Saudi Investment at Stake... Kumyang Minority Shareholders Consolidate 3%

Saudi Investment Firm Skyve T&I
Paid-in Capital Increase Conditional on Management Participation
Critical Turning Point at Extraordinary Shareholders' Meeting on the 17th

The minority shareholder alliance of Kumyang, which is facing the risk of delisting, has demonstrated its presence by consolidating more than 3% of shares. Their intention is to help pass the agenda item for the appointment of directors, so that the 405 billion KRW investment from the Saudi company can proceed quickly. The shareholders are making it clear that they intend not only to hold shares but also to participate in management and support the company's recovery, indicating a move toward joint action with the company.

Cylindrical 46mm battery by Kumyang displayed at 'InterBattery 2025' held last March. Photo by Shim Sunga

According to industry sources on the 16th, the Kumyang minority shareholder alliance achieved a share consolidation rate of 3.13% (2,000,408 shares). Under the Commercial Act, securing a 3% stake allows shareholders to request the convening of an extraordinary general meeting, make shareholder proposals, and request the dismissal of directors and auditors.

At Kumyang's extraordinary general meeting to be held on the 17th, a significant agenda item will be presented: the appointment of Al Shehri, CEO of Skyve Trading & Investment (Skyve T&I), a Saudi Arabian company, and Lee Taesik, Vice President, as new inside directors. This is a prerequisite for the successful completion of a third-party paid-in capital increase worth approximately 405 billion KRW. Kumyang accepted this condition because Skyve T&I, as the investor, decided to inject funds on the premise of participating in management.

Kumyang plans to resolve the substantive delisting review by raising funds and requesting a re-audit from an external auditor. The Gijang plant that Kumyang is building in Busan is reportedly in the high 80% range of completion, and if funds are secured, it can be completed within two to three months.

The outcome of this shareholders' meeting is expected to be a critical turning point for Kumyang, as it could lead to the successful capital increase, completion of the Gijang plant, and battery supply contracts.

Jung Jaehyung, head of the Kumyang Normalization Emergency Response Committee, stated, "Skyve's participation in management means that Saudi capital will come in to save Kumyang," and added, "Shareholders are actively seeking ways to revive the company together with a united will."

Meanwhile, the company is also making an all-out effort. With Chairman Ryu Kwangji and related parties holding only 26.5% of shares, more than one-third approval is needed to pass special resolutions such as amendments to the articles of incorporation. The company began collecting proxy consent forms from shareholders on the 7th and has reportedly secured more than one million shares so far.