"I believe the largest shareholder is someone who takes responsibility. As the largest shareholder, I will take responsibility to ensure that the company makes decisions in a direction that aligns with the interests of all shareholders by participating in the board."
Kim Sung-yeon, head of Strategic Planning at Genosco, told MoneyToday on Friday: "Oscotec has licensed out three products for over 1 trillion won each, yet its market capitalization remains undervalued compared to peer groups. Shareholder responsibility participation means linking the company's achievements to stock prices and restoring damaged vehicles by regaining trust through those stock prices."
On the 17th, Oscotec publicly disclosed that second-largest shareholder ZK Asset transferred voting rights of its holdings to Kim, son of Ocotec's founder, making him the largest shareholder. Consequently, Kim's voting shareholding increased from 12.45% to 22.25%. Although there had been controversy over management control following the death of founder Kim Jeong-geun Jeon (Chairman), multiple stakeholders are interpreted as having united for the company's development.
Kim demanded the convening of an extraordinary general meeting, issuing a challenge to Osotec. The special resolution proposals he suggested include: abolishing the supermajority voting requirement in the articles of association (a method requiring a higher level of approval than legally mandated) and appointing Ko Jong-seong (Dr.), developer of LaserTynib, and Professor Park Jong-cheol from Harvard Medical School, an expert in targeted therapy clinical trials.
Kim stated: "The shareholders' meeting is the highest decision-making body where shareholders directly participate in voting on the company's direction. By holding an extraordinary general meeting, we will correct unreasonable articles of association and add verified R&D (research and development) experts to create opportunities for Osotec to leap forward as a global biotech company."
Kim said: "Osotec was a venture startup that began in Dankook University's lab and took on challenges. After the financial crisis, in 2008, we established our U.S. subsidiary Genosco and made bold investments, which propelled the company forward. The company possesses this DNA."
As Kim noted, when Oscotec entered the biotech (life sciences) field, it was unfamiliar even domestically at the time of its founding. Especially in 1998, the year of its establishment, the country was hit by the IMF (International Monetary Fund) foreign exchange crisis, causing many companies to go bankrupt one after another. Kim remarked: "I witnessed my founder's determined challenges firsthand, and now I believe it is time to carry forward that spirit and create governance innovation at a global standard level. While we have moved steadily to defend management control in the past, from now on, we must create a favorable environment to attract investor attention through advanced governance."
On the 15th, Oscotec established a special resolution committee and took its first step toward discussing making Genosco, its subsidiary, a 100% wholly-owned subsidiary. Kim anticipated that full integration of Genosco would consolidate revenue sources and generate synergies in research capabilities.
Kim stated: "The special committee will only handle the process of purchasing subsidiary shares with advice from multiple accounting firms as required by the Commercial Act. The fundamental solution must be achieved through a special resolution at the shareholders' meeting with shareholder consent. We are convening an extraordinary general meeting to build an unshakable foundation for growth."
He also added: "Oscotec must consider various methods and procedures to expand its scale, such as increasing authorized shares to secure circulating volume and receiving third-party allocation investments. If we continue to neglect the supermajority voting requirement—which the first-instance court has already ruled invalid—by dragging it all the way to the Supreme Court, we will not be able to attract external investments or strategic partnerships needed for acquiring Genosco."
Kim holds a bachelor's degree in business administration from Emory University in Atlanta, USA, and began his career at Genosco. He served as Director of Business Development at Genosco before assuming the role of Jeon Ryak-gi-hoek (Head) since May.
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