KS Industry Changes Recipient of 10 Billion Won Paid-In Capital Increase, Confirms Extraordinary Shareholders' Meeting Agenda

KS Industry, a company specializing in the production and repair of ship cranes, is pursuing a change in its largest shareholder and a management reshuffle through a paid-in capital increase. Once the procedures are completed, Giant Chemical, a company involved in materials, is expected to become the largest shareholder and secure management control.

On September 30, KS Industry announced that it had changed the recipient of its 10 billion won paid-in capital increase to Giant Chemical. In addition, the company confirmed the agenda for an extraordinary shareholders' meeting, which includes amendments to the articles of incorporation and a management reshuffle. The new management will include CEO Kang Dongkyun and several executives from Giant Chemical.

Previously, KS Industry had been designated as a company with inadequate disclosure by the Korea Exchange after withdrawing a 6 billion won paid-in capital increase and delaying payment for another 10 billion won capital increase, resulting in 14 penalty points and a fine. This management reshuffle is seen as a move to restore trust.

A KS Industry representative stated, "Both the newly joined board members on the 10th and the existing board members made every effort to complete the paid-in capital increase, but it is regrettable that the payment continued to be delayed," adding, "I understand that the board made a decisive move to address the recent situation caused by the repeated delays in the paid-in capital increase."

Giant Chemical, the recipient of the paid-in capital increase, is a company established in 2015 in Yangsan, South Gyeongsang Province, that manufactures basic inorganic chemicals. It succeeded in developing and localizing 'magnesium silicate,' a functional adsorbent. From 2019 to 2022, it attracted investments totaling 17.4 billion won, with major investors including Korea Investment & Securities and Series Ventures. At that time, the company's valuation was approximately 130 billion won.

In June 2020, the company was selected for the 'Baby Unicorn 200 Nurturing Project,' part of the K-Unicorn Project conducted by the Ministry of SMEs and Startups. It was also chosen for the '2023 Baby Unicorn Plus' program, which selects 20 rapidly growing companies among the baby unicorns to support their entry into the global market and advancement to preliminary unicorn status (companies valued at over 100 billion won).

At next month's extraordinary shareholders' meeting, a total of nine new members, including outside directors, will be appointed. In this case, the new management will secure a majority on the board, effectively changing management control.

The representative added, "Materials and manufacturing are inseparable, and the trend in the manufacturing industry is convergence. The meeting of these two companies is expected to create synergy in R&D (research and development) and commercialization in fields such as composite materials for the marine environment and eco-friendly marine equipment." He continued, "Through the paid-in capital increase, Giant Chemical will eliminate current uncertainties and help restore trust among existing customers such as shipowners and shipyards for the company's existing business."