ARoot Files for Bankruptcy of Hotel & Resort to Focus on New Ventures Such as Semiconductor Equipment and Recycling

ARoot announced on July 24 that it has filed for bankruptcy for ARoot Hotel & Resort in order to focus its capabilities on its core business and new ventures.

In May, ARoot decided to sell tangible assets of ARoot Hotel & Resort located in Jeju Special Self-Governing Province for approximately 22.5 billion KRW. The company recently completed the asset transfer process and finalized the transaction, and plans to concentrate its resources on its core business as a result.

A company representative stated, "We decided to wind down the hotel and resort business to enhance management efficiency," and emphasized, "In addition to our core business, we will focus on new ventures such as semiconductor equipment and waste plastic recycling in order to achieve meaningful results and maximize corporate value."

ARoot recently completed a capital reduction without compensation, consolidating four common shares into 2.884 common shares of the same par value. The capital surplus of approximately 23.4 billion KRW generated from this reduction will be fully used to offset accumulated losses. The company explained that, based on this improved financial structure, it will work to strengthen the competitiveness of both its existing and new businesses.

The largest shareholder is also working to strengthen responsible management. In May, ARoot’s largest shareholder decided to purchase ARoot common shares on the open market. By July 22, the largest shareholder had acquired approximately 103,000 shares. Additional open market purchases of ARoot shares are planned until August 12.