Dong Sung Pharmaceutical CEO Yoo Youngil Claims Administrator Kim Insoo Pressured Him to Cooperate with Rehabilitation and Agree to M&A

Yoo Youngil, CEO of Dong Sung Pharmaceutical, claimed on November 19 that Kim Insoo, the joint administrator, pressured him regarding cooperation with the rehabilitation process and agreement to pursue an M&A. In response, Kim countered, saying, "I simply asked for his opinion."

The four questions presented by Kim were: ▲whether to agree to pursue an M&A; ▲willingness to cooperate for the passage of the rehabilitation plan; ▲position on Brand Refactoring's claim for termination of the rehabilitation; and ▲whether to implement the management improvement plan submitted to the exchange.

CEO Yoo argued that this inquiry was not a simple request for his position, but rather an attempt to force the CEO's written consent and a preemptive suspension strategy. He also stated that there were attempts to coerce him verbally even before the written document was delivered, and that Kim strongly pressured Yoo Youngil to sign the document regarding these questions.

Additionally, CEO Yoo stated that during an in-person meeting, Kim Insoo asked him to confirm whether he was recording the conversation and then demanded that he not record. Yoo explained that Kim also pressured him to immediately delete any recordings that had already been made in Kim's presence.

Furthermore, CEO Yoo said, "Kim stated that he would only agree to meet if I brought a written document summarizing my answers to these questions."

He added, "This essentially means that the joint administrator would refuse to meet unless I brought a document prepared in the way he intended. This goes beyond merely clarifying my position and amounts to actively inducing specific answers and controlling the content."

He also criticized, "Forcing the preparation and submission of a document guided in a particular direction, beyond the authority of the joint administrator, constitutes undue pressure and is a clear abuse of power."

In response, Kim Insoo, the joint administrator, said, "The position of Brand Refactoring has not been consistent, so I requested this information in writing to clarify the exact stance. While CEO Yoo joined Dong Sung Pharmaceutical with the help of Brand Refactoring, I simply told him to consider the company and shareholders as a director of Dong Sung Pharmaceutical."

He added, "When CEO Yoo said he was recording our conversation, I told him not to record. Then, at his request, I wrote the inquiry in writing."