KM Pharmaceutical Launches KRW 1 Billion Rights Offering with CEO Participation to Strengthen Responsible Management and Restore Corporate Value

KM Pharmaceutical is set to strengthen responsible management and restore corporate value by implementing a third-party allotment capital increase of KRW 1 billion, with the CEO contributing his personal funds.

KM Pharmaceutical announced on the 14th that it has decided to carry out a KRW 1 billion third-party allotment capital increase with the participation of CEO Baek Seung-won.

Through this capital increase, approximately 908,265 new shares are expected to be issued. The company explained that since CEO Baek is directly participating with his personal funds, this not only reflects the judgment that the current corporate value is undervalued relative to its intrinsic value, but also demonstrates the company’s commitment to responsible management to the market.

Upon completion of the capital increase, the total number of outstanding shares will rise from 5,577,410 to 6,485,675. CEO Baek’s shareholding ratio is also projected to increase from 1.68% to approximately 15.45%. The new shares are scheduled to be listed on August 7.

The company plans to use the funds secured from this capital increase as operating capital to pursue new growth businesses. By doing so, KM Pharmaceutical aims to secure cash liquidity, enhance business competitiveness, improve financial stability, and lay the foundation for mid- to long-term growth.

Baek Seungwon, CEO of KM Pharmaceutical, stated, "I believe the current corporate value is undervalued compared to its intrinsic value,” adding, "This capital increase is not only an effort to enhance corporate value, but also the first step among various measures to maximize future shareholder value."

He went on to add, "We are preparing various measures to restore financial soundness, and will actively communicate with shareholders and investors to maintain trust as well as promptly take any necessary actions."

At an extraordinary general meeting last June, KM Pharmaceutical also revised its executive retirement pay regulations to lower the payment multiplier for the CEO’s severance pay, continuing its efforts to strengthen responsible management and managerial efficiency.

The company explained that it is currently focusing on recovering performance and establishing a foundation for sustainable growth by expanding its OEM·ODM business, nurturing its life care brand, improving production efficiency, and enhancing its financial structure. In addition, it plans active investment in facility upgrades for its core OEM·ODM business and in the development of proprietary brand products to bolster competitiveness.

With this rights offering funded by the CEO’s personal contribution, KM Pharmaceutical aims to further strengthen responsible management, accelerate financial structure improvements, and invest aggressively in growth businesses using the secured capital.

This content was produced with the assistance of AI translation services.