"Administrator Conceals Disclosures at Dong Sung Pharmaceutical... Delisting Risk Mounts with Accumulated Penalties"

Brand Refactoring, the largest shareholder of Dong Sung Pharmaceutical, pointed out that the company is on the verge of being delisted due to a disclosure violation by its current administrator, former CEO Na Wonkyun.

According to the Financial Supervisory Service’s electronic disclosure system on October 16, the Korea Exchange recently found that Dong Sung Pharmaceutical failed to disclose key information in a timely manner, including the commencement of rehabilitation procedures, major lawsuits, and the results of an extraordinary general meeting of shareholders.

In response, Brand Refactoring raised questions about the responsibility of Na Wonkyun, the current administrator of Dong Sung Pharmaceutical. While Na claimed that it was a simple mistake due to administrative delays, critics argue that this was not a mere administrative error but a serious violation that infringed upon investors' rights.

There is particular concern that if another disclosure violation occurs, it could lead to trading suspension and delisting procedures, heightening the sense of crisis.

Brand Refactoring asserted that the essence of this situation lies in "deliberate concealment to defend management control." They claim there is evidence that administrator Na Wonkyun intentionally omitted or delayed major issues directly related to the company’s survival, such as the commencement of rehabilitation procedures, audit reports, and court decisions.

A representative from Brand Refactoring stated, "Former CEO Na concealed even the company’s disadvantages to protect his own position, and as a result, Dong Sung Pharmaceutical now faces the worst risk of delisting. The misuse of rehabilitation as a shield for management control has led to this penalty for inadequate disclosure, which is not a simple mistake but a clear case of evading responsibility."

Investor anxiety is also growing. Among creditors and minority shareholders, there is a spreading sense of crisis that "delisting is more frightening than a management dispute," and some shareholder groups are reportedly preparing to submit a petition to the court demanding the replacement of the administrator.

The head of a minority shareholder group emphasized, "Concealing disclosures is an act of deceiving shareholders. Trust and transparency must be restored before rehabilitation can take place."

A Brand Refactoring representative added, "The Na Wonkyun regime is not structured to save the company, but to hide its problems. This penalty for inadequate disclosure is merely the result. We will respond together with shareholders to restore transparent management and normalize the company."