Roa Holdings: "Allegations Regarding Dynamic Design Are Untrue... All Procedures Were Properly Followed"

Dynamic Design and Roa Holdings officially stated on the 17th that, according to the results of both internal and external investigations, the private bond investment by Dynamic Ventures and the acquisition of shares in an Indonesian nickel company, which were recently raised as suspicions by some media outlets, were legitimate investments carried out through proper procedures and in compliance with legal requirements.

Dynamic Ventures, a wholly owned subsidiary of Dynamic Design, acquired 8.5 billion won in private bonds in December 2021 as part of its strategy to generate investment returns. The company explained that this transaction was executed transparently in accordance with board resolutions and legal procedures, and that the business site at the time was appraised at 93.1 billion won. In addition, the company secured the stability of the bonds by establishing a priority claim amounting to 120% of the investment through a collateral trust.

The results of internal and external investigations confirmed that there were no equity or executive connections between Dynamic Design, its affiliates, and the investment. Therefore, the company asserted that this case does not constitute a related-party transaction, and that allegations by SL Holdings and other owner-affiliated parties regarding 'investments for personal gain' are entirely untrue.

A company representative stated, "Since 2020, the domestic real estate market, especially the knowledge industry center development sector, has grown rapidly based on stable rental income and high demand for sales. Financial institutions have also actively provided project financing using collateral trust structures. In line with these market trends, we carried out an appraisal of the business site and established protective measures through a collateral trust before making the investment."

However, the company explained, "Since 2022, external factors such as interest rate hikes, stricter project financing loan regulations, and an economic slowdown have led to a contraction in the construction and development sector overall. As a result, while we recovered 2.5 billion won in principal and 180 million won in interest, the recovery of the remaining principal has been delayed."

The company added, "To recover the investment, we have continued efforts through various means, including negotiating extensions of repayment deadlines and considering legal actions. In the 2022 financial statements, the unrecovered amount of 6 billion won was appropriately and transparently recognized as an impairment loss."

Furthermore, the company emphasized, "This investment was a legitimate one, conducted in compliance with transparent procedures and legal requirements such as appraisal, establishment of collateral rights, and board resolutions. Despite being a corporation with no revenue as a developer, certain parties, without accurately understanding the facts, are spreading false information that W Company, which is currently engaged in civil and criminal legal disputes with Chairman On Sungjun and Roa & Co., unrelated to us, is pressuring Chairman On and others by alleging that the investment funds we invested in Indonesia and elsewhere were received abroad and hidden. We express our regret over the dissemination of such false claims."

Additionally, Chairman On emphasized that he has never communicated with or met with Mir, the company in which we invested, in a personal capacity, and that Mir has also provided evidence and statements to judicial authorities confirming that none of the investment funds received from us were delivered to Chairman On, company officials, or used to provide entertainment or other benefits.

A Roa Holdings representative stated, "Roa Holdings Company was established early last year and has been operating lawfully and transparently as the de facto holding company of the group. Going forward, all affiliated companies will further strengthen internal controls and transparent management to prevent such misunderstandings, thereby enhancing corporate value and increasing shareholder value."