[At the Crossroads] Ameridge ② Who Are the New Executives?... Ties to Delisted and Distressed Companies

New Board Nominees Linked Through "Green Holdings"
Is There a Hidden Power?
Suspicions of M&A Using Borrowed Names

The new board members from Bokyung Housing Construction, who are set to acquire management rights of the KOSDAQ-listed company Amridge without any premium, have previously engaged in multiple transactions with distressed companies. In the market, some claim that influential figures are backing them, raising suspicions of mergers and acquisitions (M&A) using borrowed names.

According to the Financial Supervisory Service's electronic disclosure system on September 1, Amridge plans to hold an extraordinary general meeting of shareholders on September 8 to appoint new board members. This move follows the management rights transfer agreement between the previous largest shareholder, LUX HOOVER, LLC., and Bokyung Housing Construction.

If Bokyung Housing Construction pays 5 billion KRW to Amridge through a paid-in capital increase by September 8, Bokyung Housing Construction will gain management rights over Amridge. The current directors representing LUX HOOVER are expected to submit their resignations.

At Amridge's upcoming extraordinary general meeting, the company plans to newly appoint four inside directors, two outside directors, and one auditor. The key figure among the inside director candidates is Kim Heejun, CEO of Bokyung Housing Construction. Born in 1993, Kim Heejun holds 100% of the shares in Bokyung Housing Construction.

Another key figure is Kim Siyeon, born in 1997, who currently serves as CEO of a corporation called Golden Plus. The auditor for Golden Plus is Jeon Sunghui, who is known to be a family member of both Kim Heejun and Kim Siyeon.

Kim Heejun, Kim Siyeon, and Jeon Sunghui are already connected through a corporation named Green Holdings, which operates in the residential construction and sales business. Jeon Sunghui is the 100% largest shareholder and CEO of Green Holdings, while Kim Siyeon is an inside director at the company.

Green Holdings has used its real estate assets as collateral to obtain a secured loan from a company called West Green. West Green is a special purpose company (SPC) established specifically for Green Holdings' loan, and its CEO is Kim Heejun.

Green Holdings is also engaged in an apartment development project in Daegu through its affiliate, Cross143 Holdings. Cross143 Holdings is the developer of the Hoban Summit Golden Sky apartments in Hwanggeum-dong, Suseong-gu, Daegu. The CEO is Jeon Sunghui, while Kim Jina, Kim Siyeon, and Kim Minjun-known to be her children-hold 32%, 24%, and 24% stakes, respectively.

This group has also conducted real estate, stock, and financial transactions with listed companies. On August 7, Green Holdings sold seven units on the second floor of the Cross143 Tower near Gangnam Station in Seoul to the KOSDAQ-listed company Opticore for 13 billion KRW. After a recent change in its largest shareholder, Opticore used nearly all the funds it raised through convertible bonds and paid-in capital increases to acquire this real estate-a sum equivalent to half of Opticore's total assets.

Additionally, Green Holdings had financial dealings in 2019-2020 with Good People, a company implicated in the Lime Asset Management scandal. At the time, Lee Jonghyun, the son of former Samsung Electronics Vice Chairman Lee Kitae, acquired Good People through a no-capital M&A using funds from Lime Asset Management. Afterward, he committed embezzlement and other irregularities, resulting in Good People being suspended from trading.

Bokyung Housing Construction also acquired the largest shareholder consortium stake in the KOSDAQ-listed company Intromedic. Intromedic was suspended from trading after receiving a disclaimer of opinion in its 2021 audit report, and in May, the Korea Exchange decided to delist the company.

The connection with Intromedic continues at Amridge. Lee Byungjoo, who is nominated as a new outside director at Amridge's extraordinary general meeting, is also an outside director at Intromedic. Lee Byungjoo previously served as CEO of Fairway Asset Management and currently operates The Y Asset Management.

According to multiple market sources, the influential figure behind this group is known to be Kim Sangho. According to Cross143 Holdings' audit report, Kim Sangho is a related party of Jeon Sunghui and has provided a joint guarantee to Cross143 Holdings. Furthermore, listed companies that have transacted with Green Holdings and Bokyung Housing Construction consistently stated that they conducted business with Kim Sangho, not Jeon Sunghui or Kim Heejun. Some sources claim that Kim Sangho is currently out on bail after being detained in connection with a series of incidents.

Asia Economy attempted to contact Kim Heejun, CEO of Bokyung Housing Construction, to verify facts about Kim Sangho and to inquire about the business plans following the acquisition of Amridge, but did not receive a response.

Meanwhile, Lee Jihoon, one of the new director candidates for Amridge, is the singer Kyeonwoo, known for songs such as "What My Tears Say."