MiCo's Largest Shareholder CEO Jeon Seon-gyu Pledges 98.8% of His Shares for Personal Loans, Extending and New Stock Pledge Agreements of 26 Billion KRW

Jeon Seon-gyu, the largest shareholder and CEO of MiCo, pledged 4,984,002 of his 5,043,528 shares as collateral, representing 14.91% of total outstanding shares and 98.8% of his holdings.
All pledges are for personal purposes with creditors including Korea Securities Finance, KB Securities, and BNK Investment Securities. Total debt amounts to 26 billion KRW and total collateral value is 36 billion KRW.
The pledge conditions trigger upon default, which could lead to forced selling of the shares, reducing the largest shareholder's stake from 15.09% to 0.18%, posing a serious threat to management control. This creates a potential overhang and margin call risk for investors.
[AI Summary]The largest shareholder's pledge of nearly all his shares for personal debt exposes the company to significant governance risk; a sharp stock decline could trigger forced sales and a change in control, negatively impacting shareholder value. Close monitoring of margin calls and additional collateral requirements is advised.